New Delhi, November 21 (Language) The Enforcement Directorate (ED) on Tuesday said it has issued a show cause notice to education-technology company Byju’s and its CEO and co-founder Ravindran Byju for violation of foreign exchange rules worth more than Rs 9,300 crore. Notice has been sent.
The financial probe agency cited several grounds for accusing Byju’s and its key promoter of violating FEMA rules. This also includes allegations of ‘failing’ to submit import documents in respect of advance money sent outside the country.
Apart from this, there has also been an allegation of delay in giving details of export income as compared to the Foreign Direct Investment (FDI) received by the company.
The ED said in a statement that a show cause notice was issued to Think and Learn Private Limited, a company operating under the Byju brand, and its co-founder Raveendran in connection with violations of Rs 9,362.35 crore under the provisions of the Foreign Exchange Management Act (FEMA). Is.
However, in an e-mail sent to shareholders, the company has cited the audit report of a law firm and said that it has not violated any FEMA rules.
Meanwhile, the agency has said that the statements of Raveendran and Byju’s Chief Financial Officer were recorded after searches were conducted at three premises including Raveendran’s house in Bengaluru in April.
According to the statement, this step has been taken following complaints received regarding foreign investment received by Think and Learn Private Limited and the ‘business conduct’ of the company. The complaint states that the company has made investments abroad along with remittance of significant funds outside India which is in violation of the provisions of the FEMA Act, 1999.
This Bengaluru-based company provides school education and exam preparation and other services. It was founded by Ravindran Byju along with his wife Divya Gokulnath.
“We are attaching an email from one of India’s largest and most trusted law firms,” Think and Learn Pvt Ltd said in an email to shareholders. This email confirms that no violation of FEMA rules has been found in Byju’s business operations.
Along with this, the company said that it has maintained a cooperative attitude with the investigating agency during the interrogation.
“We have responded satisfactorily to all their queries, both verbal and documented,” the email said. We want to assure you that BYJU’S will continue to operate in full compliance with the regulatory framework.
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