Enforcement Directorate (ED) officials conducted searches at the premises of Byju Raveendran, CEO of ed-tech firm BYJU's, in Bengaluru, for allegedly violating foreign funding laws.
The probe agency searched two business and one residential premises in connection with a case against Raveendran and his company under the Foreign Exchange Management Act (FEMA).
The searches reportedly yielded several incriminating documents and data, including evidence that the company received foreign direct investment worth ₹ 28,000 crore and sent around ₹ 9,754 crore to various foreign entities as overseas direct investment from 2011 to 2023.
BYJU's response to the ED searches
BYJU's legal team spokesperson responded to the ED searches by stating that the visit of ED officials was related to a routine inquiry under FEMA. The spokesperson added that the company has been transparent with the authorities and has provided them with all the information they requested.
he company expressed confidence in the integrity of its operations and commitment to upholding the highest standards of compliance and ethics. It also stated that it would continue to work closely with the authorities to ensure they have all the information they need and that the matter would be resolved in a timely and satisfactory manner.
Allegations against BYJU's
According to a media release from the probe agency, the searches were initiated based on several complaints received by private individuals. The agency alleged that Raveendran Bjyu was issued "several" summons, but he remained "evasive and never appeared" before the ED. The agency also claimed that the company has not prepared its financial statements since the financial year 2020-21 and has not had its accounts audited, which is mandatory.
The ED stated that the company had booked around ₹ 944 crore in the name of "Advertisement and Marketing expenses," including the amount remitted to foreign jurisdictions. It added that the genuineness of the figures provided by the company was being cross-examined from the banks.
BYJU's response to allegations
BYJU's response to the allegations is not yet known. However, the company has previously denied any wrongdoing and stated that it complies with all laws and regulations.
