In accordance with the terms of the Foreign Exchange Management Act (FEMA), the Directorate of Enforcement (ED) has carried out searches and seizure actions at three locations connected to Byju Raveendran, the CEO and creator of BYJU’s, and his ed-tech business.
A brief about Under FEMA, ED searches BYJU’s facilities and takes data and documents
Two commercial establishments and one residential location in Bengaluru were searched. ED said that several incriminating documents and digital material were seized during the search and seizure action.
BYJU’s was contacted by Business Today for a response regarding the same. According to a corporate spokeswoman, the Enforcement Directorate’s (ED) recent visit to Bangalore was connected to a standard FEMA investigation. We have communicated with the authorities in total transparency and given them all the information they have asked for.
The ED noted in its announcement that, between 2011 and 2023, the company received Rs 28,000 crore in foreign direct investment. During the same time period, the company sent Rs 9754 crore as overseas direct investment to numerous foreign countries.
The firm representative responded to this by saying, “We have complete faith in the reliability of our business practises, and we are dedicated to upholding the greatest levels of compliance and ethics. We are confident that this issue will be resolved in a prompt and satisfactory manner and will continue to work closely with the authorities to make sure they have all the information they require.
Additionally, the ED disclosed that the company had recorded approximately Rs. 944 crore in “Advertising and Marketing Expenses,” including the sum sent to a foreign country.
Notably, the business has not produced financial statements since the 2020–21 fiscal year and has not had the accounts audited, which is required by law.
In an announcement on Saturday, the ED also stated that an inquiry into the platform and its promoters had been opened as a result of “various complaints received from various private persons.”
The agency added that despite being served with numerous summonses during the course of the inquiry, the company’s founder and CEO Byju Raveendran remained evasive and never showed up.
ED stated that more investigation into the case is ongoing.
The ed-tech giant posted a loss of Rs 4,589 crore in the financial filings for FY21, the highest loss ever declared by an Indian firm. The business’s revenue had decreased by 3.3%. Interestingly, and much to the chagrin of the Corporate Affairs Ministry, the company’s FY21 financials were delayed by about 18 months.
