According to the news channel, the agency has accused the corporation of violating the Foreign Exchange Management Act (FEMA) to the tune of Rs 9,000 crore ($1.1 billion).
According to CNBC-TV18, India’s government financial crime-fighting agency has issued a show-cause notice to ed-tech business Byju’s for possible breaches of foreign currency restrictions.
According to the news channel, the agency has accused the corporation of violating the Foreign Exchange Management Act (FEMA) to the tune of Rs 9,000 crore ($1.1 billion).
“Byju’s categorically denies receiving a notice from the Enforcement Directorate, as reported in the media.” “The company has received no such communication from the Enforcement Directorate,” it claimed in a statement.
Reuters’ attempts for comment were not immediately responded to by the Enforcement Directorate.
CNBC-TV18 said that notices were given to Byju’s creator, Byju Raveendran, and its parent business, Think & Learn Pvt Ltd.
The Enforcement Directorate investigated three Byju’s locations in April for possible FEMA breaches, exposing roughly 280 billion rupees in foreign direct investment from 2011 to 2013.
According to Reuters, CEO Raveendran iterated the company’s compliance with foreign currency legislation in an internal message at the time.
The claimed claims come after a spate of setbacks for the firm, including a drop in its valuation from investors and the resignation of its auditor and board members.
In recent months, it has also been negotiating the repayment of a $1.2 billion debt.
After a year-long wait, Byju’s released its fiscal 2021-22 results earlier this month, backed by investors such as General Atlantic, Prosus, and Blackrock.
Byju’s’ legal counsel also told ET that no communication had been received from the Directorate. “My clients have confirmed they have not received any communication from the ED until this afternoon. I am not sure where this is coming from,” said Zulfiquar Memon, the counsel, who is with the law firm MZM Legal.
The ED, a federal body that investigates financial crimes, stated in a news statement at the time that it was cross-checking the authenticity of statistics given by the firm with banks.
According to the agency, the searches found that Think & Learn, which operates Byju’s education platform, got Rs 28,000 crore in foreign direct investments between 2011 and 2023.
It also sent roughly Rs 9,754 crore to various foreign jurisdictions “in the name of overseas direct investment” during that time, according to the announcement.
The business had recorded around Rs 944 crore in advertising and marketing costs, which included a portion of the sum transmitted to foreign countries, it claimed, stressing that these transactions had been cross-checked.
