ED issues show cause notice to Byjus over FEMA violations worth over Rs 9000 cr
Nov 21, 2023
New Delhi [India], November 21 : The Enforcement Directorate has issued show cause notices to Byjus for violations under the Foreign Exchange Management Act (FEMA) violations amounting to Rs 9362.35 crores.
"The Adjudicating Authority under the Foreign Exchange Management Act (FEMA), 1999 has issued Show Cause Notices to M/s Think & Learn Private Limited and Byju Raveendran on the basis of the complaint filed by the Directorate of Enforcement (ED) under subsection (3) of section 16 of FEMA, 1999 with respect to the contraventions of the provisions of FEMA, 1999 to the tune of Rs. 9362.35 Crore," the agency said in a release.
As per the release, ED had initiated the investigation on the basis of various complaints regarding the foreign investment received by the company Think and Learn Private Limited and the business conduct of 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 release stated.
Based on the above information, ED had conducted searches at the premises of Think and Learn Private Limited and the residence of Byju Raveendran on April 27 and 28, 2023 and seized documents pertaining to all investments received by the company as well as documents pertaining to the overseas investments made by the company, it added.
The release further stated that during the course of the investigation by ED, statements of Byju Raveendran and the Chief Financial Officer of Think and Learn Private Limited were recorded.
"On conclusion of the investigation, it was found that Think & Learn Private Limited & Byju Raveendran have contravened the provisions of FEMA 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 release added.
