Ed-tech company Byju’s on Wednesday released a statement after it was slammed for violating the FEMA rules by the Enforcement Directorate (ED). The company said that it has received the notice from the Enforcement Directorate, which now definitively ends their investigation and the same was stated in their press release dated November 21.
The queries received in the notice are purely technical in nature such as delay in filing of Annual Reports (APR) with respect to duly compliant ODI investments from close to ₹8000 crores which arose from the deferred statutory audit (FY22).
The Company has however submitted necessary incentive simultaneously for all FDI which is received as per the eligibility criteria as per law and not affected by the alleged non-submission of APR. The Company also issued/allotted shares within the prescribed time against the FDI so received.
This is clarified to dispel any doubts about wrongdoing in relation to receipt of FDI or allotment of shares. The Company is advised that the delayed filing of APR (especially when returns relating to receipt of FDI were filed on time) is a technical matter and the Company is confident of successfully handling the case.
Based on precedent actions of the Adjudicating Authority, we anticipate that the fines, if any, will be nominal. To cite an example, the Late Submission Fee for such reporting delays as may be imposed as per the RBI regulations with respect to APRs is very nominal ( ₹7500) and in no way does the notice indicate a fine.
“We would like to strongly emphasize that the ED notice does not specify any amount of fine but rather highlights the amount of FDI/ODI (~9,000 crores) along with the deadlines we missed in the reference period for this amount,” the statement. further said.
We want to reassure you that BYJU’S maintains and will continue to maintain complete compliance with all relevant FEMA regulations, as verified by extensive due diligence performed by reputable law firms.
The Enforcement Directorate issued notices to Byjus for violations under the Foreign Exchange Management Act (FEMA) violations amounting to. ₹9362.35 crores.
“The Adjudicating Authority under the Foreign Exchange Management Act (FEMA), 1999 issued Show Cause Notices to M/s Think & Learn Private Limited and Byju Raveendran based on the complaint filed by the Enforcement Directorate (ED) under sub-section (3) of section 16 of FEMA, 1999 with respect to the violations of the provisions of FEMA, 1999 to the tune of Rs. 9362.35 Crores,” the agency said in a release.
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Updated: 29 Nov 2023, 21:56 IST