New Delhi: The Enforcement Directorate has seized Rs. 8.26 crore in a case related to Pigeon Education Technology India Private Limited, under the provisions of the Foreign Exchange Management Act (FEMA), 1999, media reports said.

The ED said during its investigation it was found that the company was owned by Chinese persons.

"ED has seized Rs.8.26 Crore in the case of Pigeon Education Technology India Private Limited under provisions of the FEMA,1999. Investigation revealed that the said entity was owned and controlled by the Chinese nationals and an amount of Rs 82.72 Crore has been siphoned to China and Hong Kong from the company under the pretext of advertising expenses.," the ED tweeted.

In a separate statement, ED said: " During investigation, it was ascertained that the company has siphoned off Rs.82.72 Crore to China and Hongkong in the name of Advertisement and marketing expenses on the instructions of Chinese director Liu Can."

ED said the company could not produce any proof of receipt of service on its part and proof of any advertisement published against the said expenses.

"Further, the director and accounts manager of the company has also admitted during investigation that the payment were made only on the instructions of Chinese director Liu Kan," read the statement.

"The Indian director of the company, Vedanta Hamirwasia stated that the Chinese director told them that the said advertisements were published through Google and Facebook, however, no confirmation or invoice raised by these platforms has been submitted," the statement further said.