ED issues show-cause notice to Byju’s for Fema violations

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₹9,362.35 crore. Byju’s breached Fema’s provisions by “failing to submit documents of imports against advance remittances made outside India, by failing to realize proceeds of exports made outside India, by delayed filing of documents against the foreign direct investment (FDI) received into the company, by failing to file documents against the remittances made by the company outside India and by failing to allot shares against the FDI received into the company," the investigation agency said in a statement. The ED had searched several offices of Byju’s and residences of its top executives on 24 and 28 April.

At the time, the agency had said that Byju’s had received over $3.43 billion (about ₹28,000 crore) in foreign capital between 2011 and 2023, and that it had sent ₹9,754 crore in foreign direct investments abroad. The amount of capital any entity or individual can send overseas is governed by Fema. On Tuesday, the agency said that during the search, it had “seized documents pertaining to all investments received by the company as well as documents pertaining to overseas investments." It said it had also recorded statements from founder Byju Raveendran and the company’s chief financial officer Ajay Goel.

Goel left the company in October. Following news reports about the ED notice earlier in the day, Byju’s had “unequivocally" denied the development. “The company has not received any such communication from the Enforcement Directorate," it said.