Notice issued to Think and Learn Private Limited and Byju Raveendran under FEMA

The Adjudicating Authority under the Foreign Exchange Management Act (FEMA), 1999 has issued Show Cause Notices (SCNs) to M/s Think and Learn Private Limited and Byju Raveendran based on a complaint filed by the Directorate of Enforcement (ED) under sub-section (3) of section 16 of FEMA, 1999 regarding violations of FEMA, 1999 provisions in the amount of Rs. 9362.35 Crore.

The inquiry was launched by the ED in response to a number of complaints about the company’s foreign investment, M/s Think and Learn Private Limited and its business procedures. The company was also accused of making significant foreign remittances outside India and investments overseas that were reportedly in violation of FEMA, 1999 contravention and resulted in revenue loss to the Government of India (GoI).

Based on the aforementioned details, searches conducted by the ED at M/s. Think and Learn Private Limited and Byju Raveendran’s residence on April 27 and 28, 2023, seized documents pertaining to all investments received by the company as well as documents pertaining to the company’s overseas investments.

The statements of Byju Raveendran and the Chief Financial Officer of M/s. Think and Learn Private Limited were recorded during the course of the ED’s probe. At the conclusion of the investigation, it was discovered that M/s. Think and Learn Private Limited and Byju Raveendran had violated FEMA provisions by not submitting documents of imports against advance remittances made outside India, failing to realise proceeds of exports made outside India, delaying the filing of documents against the Foreign Direct Investment (FDI) received into the company, and failing to file documents against the remittances made by the company outside India and by failing to allot shares against Foreign Direct Investment (FDI) received into the company.