Fraud alleged at online education firm; no wrongdoing, says company (Lead, superseding previous story)

February 27th, 2009 - 1:00 am ICT by IANS  

Ghaziabad, Feb 26 (IANS) One of India’s largest online education providers Educomp Solutions has been accused of fraud, but the company insists there is no wrongdoing, saying it has already provided whatever clarifications have been sought.
A police official said here Thursday that a first information report (FIR) was lodged following allegations of money laundering by company officials.

On its part, the company said: “The latest malicious attack on Educomp is another attempt by vested groups to use unethical and frivolous means to sully the image of the organization.

“This FIR has unfortunately been lodged without authentication and verification. That it is motivated is clear,” said Shantanu Prakash, CEO and MD, Educomp Solutions Ltd.

“The legal department of the company is taking requisite and necessary action on the matter. We have also written to the Prime Minister’s Office, finance minister, home minster and corporate affairs minister as well as the Uttar Pradesh chief minister’s office and asked them to look into the matter,” Prakash added.

The company also vowed to “cooperate with the government at all levels in any actions that will help establish the truth in this matter”, adding: “We expect that the comprehensive investigations will enable the company to come out with stronger credentials.”

Gajendra Kumar of Ghaziabad Feb 13 lodged a complaint with the police alleging that the company has siphoned off millions of rupees into “fraudulently created” small firms.

Senior Superintendent of Police (Ghaziabad) Akhil Kumar said a case has been registered on Kumar’s complaint.

Kumar, in his complaint, alleged: “The company has transferred the investors’ money into small companies fraudulently generated by the management at national and international level.

“Educomp has already issued detailed clarifications on allegations contained in the FIR more than three weeks back. We have already complained to SEBI and Economic Offence Wing on the matter of this attack by some vested interests against the company and manipulation of our stock,” a company spokesperson said.

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