ED Conducts Raid At Byju’s CEO’s Premises Over FEMA Violations
The ED has conducted raids on the house and offices of Byju’s CEO Raveendaran Byju in Bangalore over FEMA violation allegations & seized documents & digital data.
The Enforcement Directorate (ED) conducted searches and seizure actions at three premises in Bengaluru related to Raveendran Byju and his company, Think & Learn Private Limited, the operator of the popular online education portal Byju’s, over alleged violations of the Foreign Exchange Management Act (FEMA).
The ED claimed that Byju’s received foreign direct investment worth ₹28,000 crore between 2011 and 2023, and remitted approximately ₹9,754 crore to foreign jurisdictions during the same period in the name of overseas direct investment.
Byju’s also allegedly booked around ₹944 crore in the name of advertisement and marketing expenses, including the money remitted to foreign jurisdictions, without preparing its financial statements since fiscal year 2020-21 and without getting the accounts audited.
The ED revealed that it had received various complaints from private individuals about the platform and issued several summonses to Byju Raveendaran during its investigation, but he always remained evasive and did not appear.
The ED further stated that it seized various incriminating documents and digital data during the search and seizure action. The agency is now cross-examining the figures provided by the company from the banks to verify their genuineness.
The allegations on Byju’s are serious, as they relate to the violation of FEMA regulations and the possible transfer of funds to foreign jurisdictions without appropriate disclosure.
The failure to prepare financial statements and get the accounts audited also raises questions about the company’s financial practices.
Byju’s is one of India’s most successful edtech startups, and these allegations could damage its reputation and affect investor sentiment.
It remains to be seen how the investigation will unfold and what action, if any, the ED will take against the company and its founder.
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