ED issues notice to Byju's for forex violations of Rs 9000 crore: Reports
New Delhi, Nov 21, 2023
The Enforcement Directorate (ED) on Tuesday issued show-cause notice to Byju's for allegedly violating foreign exchange rules amounting to Rs 9000 crore, according various media reports. Byju's, the popular edtech giant, has allegedly been involved in forex violations amounting to Rs 9,000 crore, according to sources from the Enforcement Directorate (ED), as reported by ET.
However, a spokesperson from Byju's has denied these reports. The spokesperson stated, "Byju’s unequivocally denies media reports that insinuate it has received any notice from the Enforcement Department. The company has not received any such communication from the Enforcement Department."
The legal counsel representing Byju's, Zulfiquar Memon from MZM Legal, also said that there has been no communication from the Directorate. "My clients have confirmed that they have not received any communication from the ED until this afternoon. I am not sure where this is coming from," said Memon.
In April, the Enforcement Directorate had conducted searches on various premises linked to Byju's as part of an investigation into alleged violations of the Foreign Exchange Management Act (FEMA).
The ED, a federal agency responsible for investigating financial crimes, stated in a press release that they were cross-checking the accuracy of the figures provided by the company with banks. According to the agency, Think & Learn, the company behind the Byju's education platform, received foreign direct investments amounting to Rs 28,000 crore between 2011 and 2023.
Additionally, they remitted approximately Rs 9,754 crore to various foreign jurisdictions under the name of overseas direct investment. The release also mentioned that the company had recorded around Rs 944 crore as advertising and marketing expenses, including a portion of the remitted amount to foreign jurisdictions. These transactions have been cross checked by the ED.
The notice was served to Byju Raveendran, Byju's founder and its parent firm Think & Learn Pvt Ltd, reports suggest.
The claims come after a spate of setbacks for the company, including a drop in its valuation from investors and the resignation of its auditor and board members.
[The Times of India]
