Enforcement Directorate Issues Show Cause Notices to BYJU’S and Think & Learn Private Limited for Alleged Violation of Rs. 9362.35 Crore under FEMA, 1999
Investigation Reveals Contraventions Resulting in Loss of Revenue to the Government
The Adjudicating Authority under the Foreign Exchange Management Act (FEMA), 1999 has served Show Cause Notices to M/s Think & Learn Private Limited and its founder Byju Raveendran. This action follows a complaint filed by the Directorate of Enforcement (ED) under FEMA, 1999, citing contraventions amounting to Rs. 9362.35 Crore.
The ED initiated an investigation based on complaints regarding foreign investments received by Think & Learn and the company’s business conduct. Alleged significant foreign remittances and investments abroad were flagged as potential violations of FEMA, 1999, causing a loss of revenue to the Government of India.
Searches were conducted at the premises of Think & Learn and Byju Raveendran’s residence on April 27 and 28, 2023. The ED seized documents related to all investments received by the company and overseas investments made.
Statements from Byju Raveendran and the Chief Financial Officer of Think & Learn were recorded during the investigation. The ED concluded that Think & Learn and Byju Raveendran contravened FEMA provisions, including failure to submit documents for imports against advance remittances made outside India, delayed filing of documents for Foreign Direct Investment (FDI), and failure to allot shares against FDI received.
