The Adjudicating Authority under the Foreign Exchange Management Act (FEMA) has issued show cause notices to Think & Learn Private Limited, which runs education portal Byju’s, and Byju Raveendran, based on the Enforcement Directorate’s complaint alleging contraventions involving ₹9,362.35 crore, said the agency on Tuesday.
The statement came hours after, through its X handle, Byju’s denied media reports insinuating any FEMA violation on its part. “The company has not received any such communication from authorities,” it said.
The ED had initiated the FEMA inquiry based on allegations about the foreign investment received, significant foreign remittances, and overseas investments made by the company in “violation” of the Act, purportedly causing losses to the exchequer.
In April, based on the information, the agency conducted searches at locations in Bangalore associated with Think and Learn Private Limited and the residence of Mr. Raveendran and gathered relevant documents. It also recorded his statement and of the company’s chief financial officer, it said.
According to the ED, it found that the company and Mr. Raveendran had allegedly contravened the provisions of FEMA by failing to submit documents of imports against advance remittances made outside India; by failing to realize the proceeds of exports made abroad; by the 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.
Earlier, through a statement, the ED had alleged that the company received FDI of about ₹28,000 crore from 2011 to 2023, and remitted about ₹9,754 to various foreign jurisdictions during the same period “in the name of overseas direct investment”.
“The company has booked around ₹944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdiction. The company has not prepared its financial statements since the financial year 2020-21 and has not had the accounts, audited, which is mandatory. Hence, the genuineness of the figures provided by the company are being cross-examined from the banks,” the agency had alleged.
