The Enforcement Directorate (ED) has taken action against ed-tech giant Byju’s, issuing show cause notices worth ₹9,362 crore to the company’s founder, Byju Raveendran, and its parent company, Think and Learn Pvt Ltd. The ED alleges that Byju’s violated foreign exchange laws, resulting in significant revenue loss for the government.
The ED investigation is in response to multiple complaints regarding Byju’s foreign investment and business practices. The agency has accused Think and Learn Private Limited and Byju Raveendran of breaching the provisions of the Foreign Exchange Management Act (FEMA). These alleged violations include failure to submit import documents, delay in filing export proceeds, improper documentation of foreign direct investment, failure to report foreign remittances, and failure to allocate shares against foreign investment.
Byju Raveendran has been questioned by the ED during the course of this investigation. “The adjudicating authority under FEMA has issued show cause notices to Think and Learn Private Limited and Byju Raveendran in relation to contraventions amounting to ₹9,362.35 crore,” the agency stated.
In response, Byju’s has not yet issued a statement acknowledging the ED’s notices. Earlier, the company denied reports of receiving any communication from the Enforcement Directorate. With regards to the latest statement from the ED, a spokesperson for Byju’s declined to comment further.
The ED’s scrutiny of Byju’s is rooted in concerns raised about the company’s foreign investment activities and overall business conduct. According to the agency, the firm allegedly made substantial foreign remittances and investments abroad that contravened the provisions of FEMA, resulting in revenue losses for the Indian government.
This is not the first time Byju’s has faced legal action. In April this year, the ED conducted raids on three premises associated with the company for suspected FEMA violations. The investigation revealed that Byju’s received approximately ₹28,000 crore as foreign direct investment between 2011 and 2023. It was also reported that the company remitted ₹9,754 crore to various foreign jurisdictions during the same period as part of overseas direct investment.
Byju’s, which experienced significant growth during the Covid-19 pandemic, faced a decline in funding and reported losses of ₹4,589 crore in the financial year 2020-2021.
1. What are the accusations against Byju’s made by the Enforcement Directorate?
The Enforcement Directorate (ED) has accused Byju’s, an ed-tech company, of violating foreign exchange laws. The allegations include failure to submit import documents, delay in filing export proceeds, improper documentation of foreign direct investment, failure to report foreign remittances, and failure to allocate shares against foreign investment.
2. What is the total amount for which show cause notices have been issued?
Show cause notices worth ₹9,362 crore have been issued by the ED to Byju’s founder, Byju Raveendran, and the company’s parent organization, Think and Learn Pvt Ltd.
3. Has Byju’s responded to the ED’s notices?
As of now, Byju’s has not issued a statement acknowledging the ED’s notices. In an earlier statement, the company denied receiving any communication from the Enforcement Directorate.
– Hindustan Times: https://www.hindustantimes.com/