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Monday, July 15, 2024

Byju’s Strongly Denies ₹9,000-Crore FEMA Violation Notice from ED

In a recent development, the Enforcement Directorate (ED) has reportedly issued a show-cause notice to Byju’s, alleging Foreign Exchange Management Act (FEMA) breaches amounting to ₹9,000 crore. The notice reportedly includes Byju Raveendran, the founder of Byju’s, and Think and Learn Pvt Ltd, following an inquiry into potential FEMA violations by the ed-tech unicorn.

Byju’s, however, has vehemently denied these claims. In a statement, the company 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.”

This is not the first encounter between Byju’s and the ED. In April, the ED had conducted searches at three Bengaluru premises linked to Byju’s and its CEO Byju Raveendran. Seizures were made during the searches, raising concerns about possible violations of the nation’s foreign exchange rules.

Byju’s legal team spokesperson, in a statement to ANI, emphasized their transparency with the authorities, stating, “We have been completely transparent with the authorities and have provided them with all the information they have requested.” Despite the challenges, the company expressed confidence in the integrity of its operations and committed to upholding the highest standards of compliance and ethics.

The ED’s search in April uncovered that Byju’s had received foreign direct investment (FDI) totaling ₹28,000 crore from 2011-2023. Additionally, the company remitted approximately ₹9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment. Byju and Think & Learn were reported to have booked around ₹944 crore for advertisement and marketing expenses, including remittances to foreign jurisdictions.

The company’s financial practices came under scrutiny as it was revealed that Byju’s had not prepared its financial statements since FY 2021 and had not undergone the accounts’ auditing process, according to the ED’s press statement.

Despite these challenges, Byju’s remains steadfast in its commitment to delivering high-quality educational products and services to customers in India and around the world. The company assured that it will continue working closely with authorities to ensure a timely and satisfactory resolution to the matter.

For more updates stay tuned to FELA News!

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