Byjus
Enforcement Directorate confirms issue of show cause notice against Byju's in FEMA violation case
New Delhi: The Enforcement Directorate (ED) Tuesday officially confirmed the issuance of a show cause notice to the edtech firm Think and Learn Private Limited, as well as to Byju Raveendran, in connection with a FEMA violation case.
This came shortly after the company refuted having received any notice from the law enforcement agency.
The ED elaborated that both the company and its founder, Byju Raveendran, are alleged to have violated FEMA rules by not submitting documentation related to imports, failing to realize proceeds from exports conducted outside of India, and similar infractions, the agency said in a statement issued today.
“...By failing to submit documents of imports against advance remittances made outside India, by failing to realize proceeds of exports made outside India, by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, by failing to file documents against the remittances made by the company outside India and by failing to allot shares against FDI received into the company,” the ED added.
Adjudicating Authority issues show cause notices to M/s. Think & Learn Private Limited and Byju Raveendran for violation involving an amount of Rs. 9362.35 Crore under FEMA, 1999
— ED (@dir_ed) November 21, 2023
The Enforcement Directorate (ED) stated that the complaint was lodged by the ED in connection with violations of the provisions of FEMA, 1999 amounting to Rs 9,362.35 crore.
The law enforcement agency provided further details in a statement, stating that it had launched an investigation based on multiple complaints related to foreign investments received by the company.
“The company was also stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999 and caused loss of revenue to the Government of India,” the ED added.
The central investigative agency added that it had confiscated documents related to all funding received by the company, including overseas investments.
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