The Enforcement Directorate on May 19 seized Rs 8.26 crore in connection with a case of Pigeon Education Technology India Private Limited, which provides online education under the name Odaclass. The case has been registered under Section 37A of the Foreign Exchange Management Act,1999.

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ED had earlier conducted search and seizure action against the company and found that the company is fully owned by Chinese nationals and all the affairs of the company, including financial decisions were being taken by people in China.

During investigation, ED found that the firm had siphoned off Rs 82.72 crore to China and Hong Kong in the name of advertisement and marketing expenses following instructions of Chinese director Liu Can.

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The company could not produce any proof of receipt of service on its part and any advertisement published against the said expenses. Further, the director and accounts manager of the firm also admitted during the prove that the payment was made only on the instructions of director Liu Kan.

The Indian director of Pigeon Education Technology, Vedanta Hamirwasia said his Chinese counterpart told them that the said advertisements were published through Google and Facebook. However, no confirmation or invoice raised by these platforms has been submitted.

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