ED slaps over Rs 9,300 cr FEMA notice against BYJU's, main promoter Raveendran
New Delhi, Nov 21: The Enforcement Directorate on Tuesday said it has issued a foreign exchange violation show cause notice of more than Rs 9,300 crore against edtech major BYJU's and its CEO and co-founder Raveendran Bjyu.
The federal probe agency mentioned multiple grounds for charging the company and its chief promoter that included charges of "failing" to submit documents of imports against advance remittances made outside India; failing to realise proceeds of exports made outside India by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, among others.
It said in a statement that a show cause notice has been issued to the registered company of BYJU's--Think & Learn Private Limited-- and Raveendran with respect to the contraventions of the provisions of the Foreign Exchange Management Act (FEMA) to the tune of Rs 9,362.35 crore.
Post final adjudication, the ED has powers to penalise FEMA violators up to three times the value of the amount mentioned in the show cause notice.
The agency said statements of Raveendran and BYJU's chief financial officer were recorded after it carried out searches in this case at three premises, including at Raveendran's house, at Bengaluru in April.
It said the action was undertaken after complaints were received regarding the foreign investment received by Think & Learn Private Limited and the "business conduct" of the company.
The company, in the complaint, was stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999 and caused loss of revenue to the government of India, the ED said.
On conclusion of the investigation, the ED said, it was found that Think & Learn Private Limited and Raveendran have "contravened" the provisions of FEMA by failing to submit documents of imports against advance remittances made outside India; by failing to realise 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 FDI received into the company.
After the April searches, the ED had said that "the company (Think & Learn Pvt. Ltd.) has not prepared its financial statements since 2020-21 fiscal and has not got the accounts, audited which is mandatory."
The searches found that the company received foreign direct investment (FDI) to the tune of about Rs 28,000 crore during 2011-2023.
"The company also remitted about Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment," the agency had said.
The company booked around Rs 944 crore in the name of advertisement and marketing expenses including the amount remitted to foreign jurisdiction, the ED alleged.
The Bengaluru-based company provides early learning, middle school education and test preparation, among others and Raveendran Bjyu co-founded the e-learning company with his wife Divya Gokulnath.
The company earlier this month reported narrowing of operational losses in core business to Rs 2,253 crore for the 2021-22 fiscal.
Let the Truth be known. If you read VB and like VB, please be a VB Supporter and Help us deliver the Truth to one and all.
Ramadan, Lent coincide this year, happens once in three decades: How it happens, when it will occur
This year, Ramadan and Lent are reportedly being observed during the same period, a calendar overlap that happens only once in roughly 30 to 33 years.
According to a post by ‘That Dubai Page’ on Instagram both are important periods of fasting in Islam and Christianity respectively, but they follow different calendars, which is why their dates usually do not align.
What is Lent?
Lent is a 40-day period in the Christian liturgical calendar observed before Easter.
It is marked by fasting, prayer, repentance and self-examination.
The duration of 40 days reflects the time Jesus is believed to have fasted in the wilderness. Lent begins on Ash Wednesday and ends before Easter Sunday, and the feast mass is celebrated on Saturday.
The exact dates change every year because they are linked to Easter, which is calculated based on the Christian liturgical calendar.
What is Ramadan?
Ramadan is the ninth month of the Islamic lunar calendar and is observed by Muslims worldwide as a month of fasting, prayer and spiritual discipline. From dawn to sunset each day, adult and able-bodied Muslims abstain from food and drink. The fast is broken at sunset.
Unlike Lent, Ramadan does not follow the Gregorian calendar.
According to admiddleeast.com , Ramadan depends on the sighting of the new crescent moon, known as the hilāl, which signals the start of the new lunar month.
Religious committees in many Muslim-majority countries meet after sunset on the 29th day of the preceding month, Sha‘ban, to look for the moon.
If it is sighted, Ramadan begins the next day. If not, Sha‘ban is completed as a 30-day month and Ramadan starts after that.
While Saudi Arabias announcement is widely followed, each country makes its own official declaration.
Why dont they always overlap?
The Islamic lunar calendar has around 354 days, which is about 10 to 11 days shorter than the Gregorian calendar.
Because of this difference, Ramadan shifts earlier by about 10 or 11 days each year. Over time, it moves through all seasons.
Lent, on the other hand, is tied to Easter and the Christian liturgical calendar. Since the two religious observances are based on different systems for calculating dates, they rarely fall at the same time.
How often does the overlap happen?
The overlap happens in cycles of approximately 30 to 33 years. When it happens, Ramadan and Lent may coincide for a few consecutive years. After that, they do not align again for decades.
Following the current cycle, major overlaps are not expected again until the 2050s.
