The Enforcement Directorate (ED) said on Tuesday that the adjudicating authority under the Foreign Exchange Management Act (FEMA) has issued a show-cause notice to BYJUS’s parent company Think and Learn Pvt Ltd and CEO Byju Raveendran based on the complaint. 9,362.35 crore of FEMA has been booked against them.
The agency said it has initiated an investigation based on various complaints regarding foreign investment received by companies such as M/s Think and Learn Pvt Ltd and the firm’s business conduct. “The company was also said to have made substantial foreign remittances outside India and investments abroad, which allegedly violated the provisions of FEMA, 1999 and caused revenue loss to the central government,” an ED spokesperson said.
“Based on the information, the ED carried out searches at M/s Think and Learn Private Limited and Raveendran’s residences on April 27 and 28. It has seized all investment-related documents received by the company as well as foreign investment documents made by it.” said the spokesperson.
“During the ED’s probe, the statements of Raveendran and the Chief Financial Officer of M/s Think and Learn Private Limited were recorded. In the conclusion of the investigation, it was found that M/s Think & Learn Private Limited and Raveendran violated the provisions of FEMA by failing to submit import documents against advance remittances sent outside India, failing to realise the income of exports made outside. India, by delaying the submission of documents against foreign direct investment (FDI) received in the company, by failing to file documents against remittances sent by the company outside India and by failing to allot shares against FDI received in the company,” the spokesperson said.