Byjus in trouble, ED issues notice of Rs 9000 crore under FEMA violation

ED has sent a notice of Rs 9,362.35 crore to Byju's, a leading digital company in the education sector, in violation of the provisions of the Foreign Exchange Management Act (FEMA). However, Byju has said that it has not received any notice yet. The ED on Tuesday said it has issued a show cause notice to Byju and its co-founder Ravindran Byju on charges of violation of FEMA provisions.

The complaint states that the company sent money outside India in violation of the law. This caused a loss of revenue to the Government of India. The ED has cited several grounds for charging Byju's registered company Think and Learn Pvt Ltd and its promoter Raveendran, including delays in filing documents regarding foreign direct investment received by the company. The statements of Raveendran and Byju's Chief Financial Officer were recorded following raids in the case at three premises, including Raveendran's house in Bengaluru in April, the ED said.

It said the action was taken after complaints were received regarding foreign investments received by Think and Learn Private Limited. ED said that the investigation revealed that Think and Learn Private Limited and Raveendran had violated the provisions of FEMA. The investigating agency had searched two companies and a residential complex in Byju in April under the provisions of the Foreign Exchange Management Act (FEMA).

Byju's registered company – Think and Learn Private Limited was also included in this. ED had claimed in April that it had seized many documents and digital data. It was alleged that the company (Think and Learn Private Limited) has not prepared its financial statements from the financial year 2020-21 and has not got the accounts audited, which is mandatory. It was revealed that the company received foreign direct investment (FDI) of about Rs 28,000 crore during 2011-2023. The company sent about Rs 9,754 crore abroad during the same period. The company has shown around Rs 944 crore in the name of advertising and marketing expenses, which also includes the amount sent abroad, the ED alleged.

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