The Enforcement Directorate (ED) has issued a fresh look-out notice against edutech entrepreneur Byju Raveendran in connection with the inquiry into alleged violation of the Foreign Exchange Management Act (FEMA) involving ₹9,362.35 crore.
In November last year, the FEMA Adjudicating Authority had issued show cause notices to Think & Learn Private Limited, which runs education portal Byju’s, and Mr. Raveendran, based on the ED’s complaint.
Also read: Byju’s woes: A timeline of the Indian edutech giant’s troubles at home and abroad
The agency had launched the FEMA inquiry following allegations related to the foreign investment received, significant foreign remittances, and overseas investments made by the company in contravention of the Act, causing loss to the exchequer.
The ED had in April 2023 searched the Bengaluru premises of Think and Learn Private Limited and the residence of Mr. Raveendran for evidence collection. It also recorded his statement and that of the company’s Chief Financial Officer.
According to the agency, the company and Mr. Raveendran had failed to submit documents of imports against advance remittances made outside India; failed to realise the proceeds of exports made abroad; delayed the filing of documents against the Foreign Direct Investment (FDI) received into the company; failed to file documents against the remittances made by the company overseas; and also failed to allot shares against the FDI received.
Earlier, the ED had alleged that the company received about ₹28,000 crore of FDI from 2011 to 2023, and remitted about ₹9,754 crore to different foreign jurisdictions during the same period “in the name of overseas direct investment”.
“The company has booked around ₹944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdiction. The company has not prepared its financial statements since financial year 2020-21 and has not got the accounts audited, which is mandatory. Hence, the genuineness of the figures provided by the company are being cross-examined from the banks,” it had alleged.
