- The Enforcement Directorate carried out searches at three premises in Bengaluru belonging to Byju Raveendaran, the CEO , in connection with alleged foreign exchange violations.
- During the search, various incriminating documents and digital data were seized by the federal probe agency.
- The ED said that the searches revealed that the company has received foreign direct investment to the tune of Rs 28, 000 crore during the period from 2011 to 2023.
- As per the financial statements of FY21, the company reported a loss of Rs 4,589 crore, the largest-ever reported by an Indian startup.
- Byju’s in a statement said that the recent visit by officials from the ED in Bengaluru was related to a “routine inquiry” under FEMA.
The Enforcement Directorate carried out searches at three premises in Bengaluru belonging to Byju Raveendaran, the chief executive officer (CEO) of ed-tech giant Byju’s, in connection with alleged foreign exchange violations. During the search, various incriminating documents and digital data were seized by the federal probe agency. The agency conducted searches at three premises in Bengaluru, two business and one residential, in connection with a case against Raveendaran and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of the Foreign Exchange Management Act (FEMA).
The ED said that the searches also revealed that the company has received foreign direct investment to the tune of Rs 28, 000 crore during the period from 2011 to 2023″. The company has also remitted Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment, the agency alleged.
As per the financial statements of FY21, the ed-tech major reported a loss of Rs 4,589 crore, the largest-ever reported by an Indian startup. The company’s revenues had fallen 3.3 per cent. Interestingly, the FY21 financials of the company were delayed by almost 18 months, much to the annoyance of the Corporate Affairs Ministry.
The ED alleged that the company has booked around Rs 944 crore in the name of advertisement and marketing expenses including the amount remitted to foreign jurisdiction. It also alleged that the company has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited which is mandatory. The ED also announced in a release, that investigation against the platform and its promoters was initiated on the basis of “various complaints received from various private persons.” The ED said that during the investigation conducted by it, several summonses were issued to the founder and CEO ,however, he never appeared during the investigation.
Byju’s in a statement said that the recent visit by officials from the ED in Bengaluru was related to a “routine inquiry” under FEMA. It said that the firm has been “completely transparent” with the authorities and have provided them with all the information they have requested.
The company also said that it will continue to work closely with the authorities to ensure that they have all the information they need. “We are committed to delivering high-quality educational products and services to our customers across India and the world. We remain focused on our mission to transform the way students learn and prepare for their future,” the statement reads.
Further investigation in the matter is under progress, ED highlighted.
(With inputs from agencies)
