Byju’s denies media reports claiming ₹9,000-crore FEMA violation notice from ED
The notice reportedly encompasses Byju Raveendran, the founder of Byju’s, and Think and Learn. The ED’s move comes after an inquiry into potential FEMA violations by the ed-tech unicorn.
The Enforcement Directorate (ED) has reportedly served a show-cause notice to Byju’s, alleging Foreign Exchange Management Act (FEMA) breaches totalling ₹9,000 crore, as per a TIN report citing sources.
The notice reportedly encompasses Byju Raveendran, the founder of Byju’s, and Think and Learn Pvt Ltd. The ED’s move comes after an inquiry into potential FEMA violations by the ed-tech unicorn, it added.
Byju’s has however strongly refuted the claims. In a statement on X, the company said, “BYJU’s unequivocally denies media reports that insinuate BYJU’s of any FEMA violation. The company has not received any such communication from authorities.”
The ED did not respond to Reuters queries for comments.
Earlier trouble with ED
Earlier in April, the ED had searched three Bengaluru premises related to Byju’s and its billionaire CEO Byju Raveendran. They had also conducted seizures for possible violations of the nation’s foreign exchange rules.
The Enforcement Directorate (ED) said in a statement it had seized various documents and digital data during the search and had issued a summons for the CEO, but he did not appear.
“We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics,” Byju’s legal team spokesperson in a statement to TIN said.
“The company will continue to work closely with the authorities to ensure that they have all the information they need, and it is confident that the matter will be “resolved in a timely and satisfactory manner,” the spokesperson added.
“We want to emphasize that it is business as usual at BYJU’S. We are committed to delivering high-quality educational products and services to our customers across India and the world,” the spokesperson said.
What was found in April?
The searches revealed that the ed-tech unicorn has received foreign direct investment (FDI) to the tune of ₹28,000 crore (approx) from 2011-2023.
Further, the company has also remitted roughly ₹9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment.
Byju and his firm Think & Learn have booked around ₹944 crore in the name of advertisement and marketing expenses including the amount remitted to the foreign jurisdiction.
Besides, the company has not prepared its financial statements since FY 2021. and has not got the accounts audited, according to the ED’s press statement.
The probe against the platform was initiated based on various complaints received from private persons.