The Enforcement Directorate's Adjudicating Authority has issued 'show cause' notices to edtech firm Think and Learn Private Limited, as well as Byju Raveendran, concerning alleged violations amounting to Rs 9362.35 crore under the Foreign Exchange Management Act (FEMA) 1999.
In a statement released on Tuesday, the ED announced that an investigation was initiated based on multiple complaints regarding foreign investments received by the company and its business practices. Allegations pointed towards significant foreign remittances made by the company outside India, as well as investments abroad, allegedly infringing provisions of FEMA, 1999, and resulting in a loss of revenue for the Indian Government.
The ED further mentioned conducting searches at the premises of Think and Learn Private Limited and Byju Raveendran's residence on April 27 and 28, 2023. Documents related to all investments received by the company and those concerning overseas investments were seized during these operations.
As part of the investigation, statements from Byju Raveendran and the Chief Financial Officer of Think and Learn Private Limited were recorded. The conclusion of the investigation revealed alleged contraventions by the company and Byju Raveendran against various FEMA provisions, including failure to submit import documents against advance remittances made outside India, delayed filing of documents regarding Foreign Direct Investment (FDI), and failure to allot shares against FDI received.
However, in response to these reports, BYJU's, a prominent edtech major, denied receiving any show cause notice from the Enforcement Directorate. A spokesperson from the company explicitly refuted media reports regarding the ED's notice, stating that they had not received any communication from the Enforcement Directorate regarding this matter.
(With Agency Inputs)
