The Enforcement Directorate (ED) reportedly issued a show-cause notice to ed-tech giant, Byjus over alleged Foreign Exchange Management Act (FEMA) violations amounting to ₹9,000 crore. According to sources cited by CNBC-TV18, the notice includes Byju Raveendran, the founder, and Think and Learn Pvt Ltd.
In response to the allegations, Byju’s strongly refuted the claims. The company, in a statement on X, stated, “BYJU’s unequivocally denies media reports that insinuate BYJU’s of any FEMA violation. The company has not received any such communication from authorities.”
— BYJU’S (@BYJUS) November 21, 2023
Byju’s earlier encounter with ED
This is not the first encounter between Byju’s and the ED. In April, the ED had conducted a raid at three Bengaluru locations related to Byju’s and its CEO, Byju Raveendran. The searches were linked to potential violations of the country’s foreign exchange rules.
In response to the previous ED actions, Byju’s legal team spokesperson assured, “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.”
The spokesperson added, “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.”
Addressing the current situation, the spokesperson emphasized, “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 ED’s investigation in April had uncovered that Byju’s had received foreign direct investment (FDI) of around ₹28,000 crore from 2011-2023. Additionally, the company remitted about ₹9,754 crore to various foreign jurisdictions during the same period under the category of overseas direct investment.
Byju and his firm Think & Learn were found to have booked approximately ₹944 crore as advertisement and marketing expenses, including the remittance to foreign jurisdictions. Moreover, the ED stated that the company had not prepared financial statements since FY 2021 and had not audited its accounts. The ED’s probe into Byju’s was initiated based on complaints from private individuals.