'Always fully compliant': Byju Raveendran to shareholders on FEMA compliance

Byju Raveendran, founder of edtech major Byju’s, has written to shareholders assuring them of the company's full compliance with Foreign Exchange Management Act (FEMA) regulations. He informed them that a ‘comprehensive due diligence’ conducted by a top law firm found no FEMA violations.

Raveendran wrote to his shareholders following media reports about the Enforcement Directorate (ED) issuing a show-cause notice to the company, alleging FEMA violations amounting to Rs 9,000 crore.

“We want to assure you that Byju's has always been fully compliant with FEMA regulations,” he wrote, adding that the news report is “entirely based on hearsay and lacks any factual basis. “As of today, BYJU'S has not received any such notice, as mentioned in the article,” said the email, a copy of which has been reviewed by Business Today.

He also communicated to shareholders that 'one of India's largest and most trusted law firms,' conducted a 'comprehensive due diligence' on the company's FEMA compliance and found no FEMA violations at Byju’s.

“Byju’s has maintained a cooperative stance with the ED throughout their inquiries. We have satisfactorily answered all their queries, both verbally and on record,” the letter said.

Earlier in the day, the Bengaluru-based company denied receiving any notice. "Byju’s unequivocally denies media reports that insinuate it has received a notice from the Enforcement Department. The company has not received any such communication from the Enforcement Department,” the company said in a statement.

In April this year, ED conducted searches at three premises in Bengaluru in connection with a case lodged against Raveendaran and his company ‘Think & Learn Private Limited’ under the provisions of the FEMA.

During the search and seizure action, various incriminating documents and digital data were seized, ED officials said.

The company has received foreign direct investment of approximately Rs 28,000 crore from 2011 to 2023 and remitted about Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment, ED officials said.

At that time, ED officials said the company had booked around Rs 944 crore in the name of advertisement and marketing expenses including the amount remitted to foreign jurisdiction. 

Later, a company spokesperson negated the claims and said that the ED visit was related to a routine inquiry under FEMA, and there have been no violations under FEMA by the company.  

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