Byju Raveendran: ED issues show cause notice of Rs 9,362 crore to Byju’s for forex violation

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The Enforcement Directorate, late Tuesday, confirmed it has issued show cause notices to Byju’s parent Think & Learn and its founder and chief executive Byju Raveendran for violations involving an amount of Rs 9,362.35 crore under the Foreign Exchange Management Act (FEMA).

Byju’s declined ET’s request for comment on the matter.

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Earlier in the day, ET reported that ED had found alleged forex violations to the tune of Rs 9,000 crore by edtech giant Byju’s, citing sources.

In response to ET’s request for comment on the matter, a spokesperson said the company “unequivocally denies media reports that insinuate it has received any notice from the Enforcement Directorate.”

“The company has not received any such communication from the Enforcement Directorate,” the spokesperson had told ET.

In its latest statement, the directorate said that it had initiated investigation on the basis of various complaints regarding the foreign investment received by the company and business conduct of the company.

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“The company was also stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999 and caused loss of revenue to the Government of India,” ED said in its press release.ED further said that it had conducted searches at the premises of Byju’s and the residence of Raveendran on April 27 and 28 and seized documents pertaining to all investments received by the company as well as documents pertaining to the overseas investments made by the company.

The contravention, ED said, was caused by failing to realise proceeds of exports made outside India, by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, by failing to file documents against the remittances made by the company outside India and by failing to allot shares against FDI received into the company.

Byju’s has in the last three years, has made several acquisitions overseas of the likes of Great Learning, Osmo and Epic, all transactions that fall under the purview of FEMA.

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