Byju: The floundering edtech company Byju’s was found to have committed forex violations totaling Rs 9,000 crore by the Enforcement Directorate (ED) on Tuesday. The accusation against Byju’s stems from searches and seizures carried out by the ED at three locations in Bengaluru in connection with Byju Raveendaran, the founder and CEO of “Think & Learn Private Limited,” in accordance with FEMA regulations.
Digital Trail Uncovered
The investigation team found a number of digital data files and documents that implicated the subject during the search and seizure operation. Additionally, the searches showed that between 2011 and 2023, the company received foreign direct investment (FDI) totaling about Rs 28,000 crore. Additionally, during the same time period, the company sent approximately Rs 9,754 Crore in foreign direct investment to a number of different jurisdictions. Including the amount sent to overseas jurisdictions, the company has recorded advertising and marketing expenses of about Rs 944 crore.
Financial Transparency Lapses
Since the fiscal year 2020–21, the company has not prepared its financial statements and has not undergone the required process of having its accounts audited. Banks are currently cross-examining the figures that the company provided, as the investigation agency doubts their veracity. It should be mentioned that a number of complaints from individual users served as the foundation for the investigation against the platform.
Founder Receives Multiple Summonses Amid ED Investigation
Byju Raveendran received multiple summonses throughout the ED’s investigation. He hasn’t, however, shown up at all throughout the investigation. In a statement, Byju’s denied being associated with any violations of the Foreign Exchange Management Act (FEMA). Byju‘s categorically refutes any allegations made in the media that Byju’s violated any FEMA regulations. An edtech company spokesperson stated, “The company has not received any such communication from authorities.”
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