ED Issues ₹9,000 Crore Notice To Byju's For Violating Foreign Funding Laws: Report (Image: byjus.com)
The Enforcement Directorate (ED) has reportedly issued a notice to Byju”s and asked it to pay ₹ 9,000 crore. A CNBC-TV18 report, citing sources, revealed that the central agency made this move because Byju”s allegedly violated the Foreign Exchange Management Act (FEMA). However, Byju”s strongly denied all the claims and stated that the company has not received any such communication from the authorities.
— BYJU”S (@BYJUS) November 21, 2023
The report revealed that the ED notice encompasses Byju Raveendran, the founder of Byju”s, and Think and Learn Private Ltd, the parent company of Byju”s. The edtech major took to its official X handle to deny the media reports. “Byju”s unequivocally denies media reports that insinuates Byju”s of any FEMA violation. The company has not received any such communication from authorities,” said the company on November 21. In September, Bloomberg reported that the company hid $533 million in an obscure three-year-old hedge fund. However, Byju”s denied this serious allegation and said that the transaction was carried out within the terms of its credit agreement with lenders.
In April, the Enforcement Directorate conducted search and seizure operations at three locations connected to the company. The raids, which were part of the foreign exchange violation probe, were held at the Bengaluru-located office and residential premises of Byju’s CEO, Raveendran Byju. During this raid, the ED reportedly unearthed various incriminating documents as well as digital data. The probe agency also alleged that Byju”s has not prepared its financial statements since the financial year 2020–21. The ED raid also revealed that during the period from 2011 to 2023, Byju”s received foreign direct investment (FDI) to the tune of approximately Rs 28,000 crore.
