ED issues notice to BYJU’s to pay over Rs 9,000 crores For FEMA violations 

Pune Pulse

ED issues notice to BYJU's to pay over Rs 9,000 crores For FEMA violations

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The parent company of BYJU’S, Think & Learn Private Limited, and CEO Byju Raveendran received show-cause notices from the adjudicating authority under the Foreign Exchange Management Act (FEMA), according to a complaint filed against them for alleged FEMA violations totaling Rs 9,362.35 Crore, the Enforcement Directorate (ED) said on Tuesday.

As per further information, the agency said that it had started an investigation in response to multiple complaints about the company’s business practices and foreign investments.

According to an ED spokesperson, the company was also accused of making sizable investments and foreign remittances that were outside of India and purportedly violated the terms of the FEMA, 1999, costing the Central government money.

The ED searched M/s Think and Learn Private Limited’s property and Raveendran’s home on April 27 and 28, based on the information provided. Documents relating to all investments the company had received as well as records of its foreign investments were taken by it.

The ED Spokesperson further added that statements from M/s Think and Learn Private Limited’s Chief Financial Officer and Raveendran were recorded during the ED’s investigation. After the inquiry was completed, it was discovered that M/s Think & Learn Private Limited and Raveendran had violated the FEMA’s provisions by neglecting to submit import documentation against advance remittances made outside of India, failing to realize export proceeds made outside of India, filing documents against foreign direct investment (FDI) into the company later than necessary, failing to file documents against FDI the company received outside of India, and failing to allot shares against FDI gotten into the company.

Shreyas Vange

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