ED uncovers Rs. 9,000cr FEMA violation at BYJU'S, issues notice
The Enforcement Directorate (ED) has issued a show-cause notice to BYJU'S, accusing the company of violating the Foreign Exchange Management Act (FEMA) to the tune of Rs. 9,000 crore. The notice is said to be directed at founder Byju Raveendran and his company Think and Learn Pvt. Ltd. However, BYJU'S has refuted claims of receiving any such notice, stating, "BYJU'S unequivocally denies media reports that insinuate it has received a notice from the ED."
Search and seizure at BYJU'S premises in April
Earlier in April, the ED had carried out search and seizure operations at three locations in Bengaluru, related to a case filed against Raveendaran and his company Think & Learn under FEMA provisions. ED officials claimed to have seized various incriminating documents and digital data during the operation. A spokesperson for the company later dismissed these allegations, stating that the ED visit pertained to a routine inquiry under FEMA and that the company had not committed any violations.
BYJU'S foreign direct investment and remittance
According to ED officials, BYJU'S has received foreign direct investment of around Rs. 28,000 crore between 2011 and 2023. Out of this amount, it remitted approximately Rs. 9,754 crore to different foreign jurisdictions under the guise of overseas direct investment. The officials also noted that the company had recorded nearly Rs. 944 crore as advertisement and marketing expenses, including amounts sent to foreign jurisdictions.
ED is expected to issue a statement soon
Sources familiar with the matter informed the Economic Times that "The notice has not been sent to the company yet, but the ED is expected to issue a statement on this matter soon." The edtech firm has also been under the scrutiny of the Ministry of Corporate Affairs (MCA) and the Directorate General of GST Intelligence (DGGI).
