The Enforcement Directorate on Tuesday mentioned it had issued showcause notices to edtech agency Think & Learn Private Limited and Byju Raveendran over alleged violation of ₹9,362.35 crore below Foreign Exchange Management Act, 1999.
“Adjudicating Authority points present trigger notices to M/s. Think & Learn Private Limited and Byju Raveendran for violation involving an quantity of Rs. 9362.35 Crore below FEMA, 1999,” the central company posted on X.
The announcement by ED comes hours after Byju’s denied receiving any such discover over FEMA violations. “Byju’s unequivocally denies media stories that insinuate it has acquired a discover from the Enforcement Directorate. The firm has not acquired any such communication from the Enforcement Directorate,” the edtech platform had mentioned in an announcement earlier on Tuesday.
What’s the case about?
In April this 12 months, the ED had searched two enterprise and one residential premise, together with that of Byju’s registered firm Think & Learn Pvt. Ltd. — below the provisions of the Foreign Exchange Management Act (FEMA).
Byju’s has been dealing with probe by the ED that claimed to have seized incriminating paperwork and digital knowledge after searches. According to the company, the corporate has not ready its monetary statements since 2020-21 fiscal and has not received the accounts, audited which is obligatory.
ED mentioned the searches have been carried out on the premise of complaints acquired by personal individuals, alleging that edtech founder Raveendranwas issued “a number of” summons however he remained “evasive and by no means appeared”.
The searches discovered that the corporate acquired overseas direct funding (FDI) to the tune of about ₹28,000 crore throughout 2011-2023.
“The firm additionally remitted about ₹9,754 crore to varied overseas jurisdictions throughout the identical interval within the title of abroad direct funding,” the ED had mentioned.
According to the ED, Byju’s booked round ₹944 crore within the title of commercial and advertising and marketing bills together with the quantity remitted to overseas jurisdiction.
The firm earlier this month reported narrowing of operational losses in core enterprise to ₹2,253 crore for the 2021-22 fiscal.