BENGALURU: The Directorate of Enforcement (ED) conducted searches and seizure action on three premises (two business and one residential) of learning app Byju’s founder Raveendaran Byju and his company ‘Think & Learn Private Limited’ in Bengaluru under the provisions of Foreign Exchange Management Act (FEMA).
“During the search & seizure action various incriminating documents and digital data were seized,” the ED stated in an official release on Saturday. The company runs the popular online education portal Byju’s.
“FEMA searches also revealed that the company has received foreign direct investment (FDI) to the tune of approximately Rs 28,000 crore during the period 2011 to 2023. Further, the company has also remitted approximately Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment. The company has booked around Rs 944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdiction,” the central agency added.
“The company has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited, which is mandatory. Hence, the genuineness of the figures provided by the company are being cross-examined from the banks,” the ED stated.
The FEMA investigation against the platform was initiated “on the basis of various complaints received from various private persons. During the investigation conducted by the ED, several summonses were issued to the founder & CEO Raveendaran Byju, however, he always remained evasive and never appeared during the investigation. Further investigation is under progress”, the agency added.
Byju’s legal team spokesperson said, “The recent visit by officials from the Enforcement Directorate (ED) in Bengaluru was related to a routine inquiry under FEMA.”
“We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics. We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner,” he said.
“We want to emphasize that it is business as usual at BYJU’S. 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,” added Byju’s spokesperson.
CEO always remained evasive, says ED
The Foreign Exchange Management Act (FEMA) investigation against the platform was initiated on the basis of various complaints received from various private persons.
During the investigation conducted by the ED, several summonses were issued to the founder & CEO Raveendaran Byju, however, he always remained evasive and never appeared during the investigation. Further investigation is under progress, the agency added.
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