Based on a complaint filed by the Directorate of Enforcement (ED) under subsection (3) of section 16 of the Foreign Exchange Management Act (FEMA), 1999, the Adjudicating Authority under the FEMA, 1999 has issued Show Cause Notices to M/s Think & Learn Private Limited and Byju Raveendran regarding the violations of the FEMA, 1999 provisions amounting to Rs. 9362.35 Crore.
A number of concerns about the company’s business practices and the foreign investment it had received, M/s Think and Learn Private Limited, led the ED to launch an investigation into the matter. The corporation was also accused of making large international investments and remittances outside of India that allegedly violated the terms of the FEMA, 1999 and cost the Indian government money.
Based on the information provided above, the ED searched M/s. Think and Learn Private Limited’s location as well as Byju Raveendran’s residence on April 27 and 28, 2023, seizing documents related to all investments the company had received as well as those related to its foreign investments.
Byju Raveendran’s and M/s. Think and Learn Private Limited’s Chief Financial Officer’s remarks were recorded during the ED’s inquiry.
After the investigation was completed, it was discovered that M/s. Think & Learn Private Limited & Byju Raveendran had violated the FEMA’s provisions by neglecting to submit import documentation against advance remittances made outside of India, failing to realize export proceeds made outside of India, delaying the filing of documentation against Foreign Direct Investment (FDI) received by the company, failing to file documentation against FDI received by the company, and failing to allot shares against FDI received by the company.
