BENGALURU: The Enforcement The Enforcement Directorate (ED) on Tuesday issued a show-cause notice to edtech company Byju's in relation to FEMA (Foreign Exchange Management Act) violations to the tune of Rs 9,362.35 crore.
The ED notice comes as the latest trouble for the company, which has been grappling with multiple challenges in the past one year. The federal probe agency had initiated investigation on the basis of various complaints regarding the foreign investment received by Byju’s parent company Think and Learn Private Limited and the business conduct of the company.
“The company was stated to have made significant foreign remittances and investments abroad, which were allegedly in contravention of provisions of FEMA, 1999 and caused loss of revenue to the Government of India,” the agency said in a statement.
In April this year, ED conducted searches on the premises of Think and Learn and the residence of its founder Byju Raveendran and seized documents pertaining to investments received by the company as well as documents pertaining to its overseas investments. The agency said, “On conclusion of the investigation, it was found M/s. Think & Learn & Byju Raveendran have contravened the provisions of FEMA by failing to submit documents of imports against advance remittances made outside India…
Meanwhile, Byju’s has reached out to its investors and assured that the company has always been compliant with FEMA regulations. Till Tuesday evening, the company said it didn’t receive any notice, but ED confirmed the notice by releasing a statement on Tuesday.
“Byju’s has maintained a cooperative stance with the ED throughout their inquiries. We have answered all their queries, both verbally and on record,” a letter sent by the company to its investors said. The company is backed by investors including Chan-Zuckerberg Initiative, General Atlantic, Tencent, Lightspeed Ventures and Tiger Global, among others.
Yet another trouble for Bengaluru-based edtech firm
This is yet another trouble for the edtech company, grappling with multiple challenges in the past one year. The probe agency had initiated probe on the basis of various complaints regarding the foreign investment received by the Byju’s parent company, Think and Learn