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HomeNationFEMA notices worth ₹9,362 crore sent to Byju Raveendran, parent company: ED

FEMA notices worth ₹9,362 crore sent to Byju Raveendran, parent company: ED

NEW DELHI: The Enforcement Directorate (ED) has issued show cause notices (SCNs) to ed-tech company Byju’s founder, Byju Raveendran and the parent company, Think and Learn Pvt Ltd, over alleged violations by the company worth 9,362 crore under the foreign exchange law, causing loss of revenue of the government, the federal agency said in a statement on Tuesday.

FILE PHOTO: Byju’s logo is seen in this illustration taken, June 22, 2023. (REUTERS)

“Think and Learn Private Limited and Byju Raveendran have contravened the provisions of FEMA (Foreign Exchange Management Act) 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 agency statement said.

ED added that the agency has recorded statements Byju Raveendran during the investigation.

“The adjudicating authority under the FEMA, 1999 has issued show cause notices to Think and Learn Private Limited and Byju Raveendran on the basis of the complaint filed by ED under sub–section (3) of section 16 of FEMA, 1999 with respect to the contraventions of the provisions of FEMA, 1999 to the tune of 9362.35 crore,” the statement said.

The company hasn’t reacted to the ED statement yet. A statement issued earlier in the day denied reports that the firm had been sent notice by ED. “The company has not received any such communication from the Enforcement Directorate,” a company statement said.

Asked about ED statement on Tuesday evening, a Byju’s spokesperson said they have “no further comment”.

The ED probe is based on various complaints regarding the foreign investment received by Byju’s and its business conduct.

“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 agency said.

On April 27 and 28 this year, ED raided three premises linked to Byju’s over alleged FEMA violations. In a statement issued after the raids, ED had then said alleged that the searches revealed that the company received foreign direct investment of around 28,000 crore from 2011 to 2023. The company remitted 9,754 crore to various foreign jurisdictions in the same period in the name of overseas direct investment, it claimed.

Byju’s, a test prep firm founded in 2011, saw a massive boom during the Covid-19 pandemic. But the beleaguered ed-tech firm saw a huge slump in its funding and reported losses worth 4,589 crore in 2020-2021.

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