The Enforcement Directorate (ED) confirmed sending a show cause notice to edtech company Think and Learn Private Limited, and its founder Byju Raveendran, citing FEMA violation allegations amounting to Rs 9,362 crore. This confirmation follows the company’s earlier denial of having received any notice from the ED.
According to the ED’s statement on November 21, the company and its founder allegedly breached FEMA regulations by failing to furnish import-related documents against advance remittances made outside India, realizing proceeds from exports made outside the country, delayed filing of documents related to Foreign Direct Investment (FDI) received by the company, not filing documents for remittances made outside India, and not allocating shares against FDI received by the company.
The ED initiated an investigation based on multiple complaints concerning foreign investments received by the company. The agency alleged significant foreign remittances and investments abroad, which supposedly violated FEMA, 1999, causing a loss of revenue to the Government of India, amounting to Rs 9,362.35 crore.
Previously, reports indicated that the ED had issued a show-cause notice to the company for alleged violations amounting to Rs 9,000 crore. In an earlier incident in April, the ED conducted searches at three locations in Bengaluru related to Raveendran and the company under FEMA provisions, seizing incriminating documents and digital data.
In the recent statement, the ED mentioned seizing documents related to all investments received by the company, both domestic and overseas. Raveendran had informed shareholders about the company’s complete compliance with FEMA after a recent due diligence effort, contrasting the subsequent notice issued by the ED.