The Directorate of Enforcement (ED) has issued Show Cause Notices (SCN) to Byju Raveendran, Founder of Byju’s and Think and Learn Pvt Ltd for alleged contravention of Foreign Exchange Management Act (FEMA) provisions.
In a significant development, the Adjudicating Authority under the Foreign Exchange Management Act (FEMA), 1999 has taken action against prominent educational technology company M/s Think & Learn Private Limited and its founder, Byju Raveendran. Show Cause Notices (SCN) have been issued based on a complaint filed by the Directorate of Enforcement (ED) under sub-section (3) of section 16 of FEMA, 1999.
The allegations revolve around contraventions of FEMA provisions, amounting to a staggering Rs. 9362.35 Crore. The ED initiated an investigation following various complaints related to foreign investments received by Think & Learn Private Limited and the company’s business conduct.
The investigation revealed that the company had reportedly made significant foreign remittances and investments abroad, allegedly violating provisions of FEMA, 1999, and causing a loss of revenue to the Government of India. ED conducted searches at the premises of Think & Learn Private Limited and Byju Raveendran’s residence on 27.04.2023 and 28.04.2023, seizing crucial documents related to both domestic and overseas investments.
During the investigative process, statements from Byju Raveendran and the Chief Financial Officer of Think & Learn Private Limited were recorded. The ED found instances where the company and its founder contravened FEMA provisions, including failure to submit documents of imports against advance remittances made outside India, delayed realization of proceeds from exports made abroad, and delayed filing of documents related to Foreign Direct Investment (FDI) received.
Furthermore, violations included the failure to file documents against remittances made by the company outside India and the failure to allot shares against FDI received. The ED’s conclusive findings emphasize the alleged non-compliance with FEMA regulations by Think & Learn Private Limited and Byju Raveendran.
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