Mumbai: The Enforcement Directorate on Tuesday (November 21) issued a show-cause notice to BYJU for alleged violations of Rs 9,000 crore in connection to the Foreign Exchange Management Act (FEMA), according to reports. However, the EDtech company denied reports that it received any such notice.
However, Byju's has refuted this claim. The company on X posted, "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 Departmen
Earlier raids at 3 locations over FEMA violations at Bengaluru premises
Byju's has been under the scrutiny of the Enforcement Directorate (ED) for quite some time. On April 29 this year, the ED conducted raids on three premises— one residential and two business locations— as part of a probe into violations of the Foreign Exchange Management Act (FEMA).
Think & Learn Pvt Ltd has defaulted in preparing its financial statements since 2020-21 fiscal and has not got the accounts audited, which is mandatory, the ED said. Thus, the genuineness of figures provided by the company are being cross-examined from banks, it said.
The raids also revealed that the company received foreign direct investment (FDI) to the tune of Rs 28,000 crore during 2011-2023.
“The company also remitted about Rs9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment,” the agency said. “The company has booked around Rs944 crore in the name of advertisement and marketing expenses including the amount remitted to foreign jurisdiction,” the ED said.
The action was taken on the basis of various complaints received by private people, the central agency said and alleged that Byju Raveendran was issued several summons but remained evasive and never appeared before the ED.
The Bengaluru-based company, co-founded by Byju Raveendran and his wife Divya Gokulnath, provides early learning, middle school education and test preparation. It was valued at $22 billion in a funding round in March 2022.