ED Sends Notice To Byju’s Over ₹9,000 Crore Foreign Exchange Violation
The prominent ed-tech company Byju’s faces serious charges of violating the Foreign Exchange Management Act (FEMA). The Enforcement Directorate (ED) has accused Byju’s of a massive FEMA violation, amounting to Rs 9,362.35 crore. This is a huge sum and points to potential irregularities in how the company managed its foreign funds.
The ED, which oversees financial laws and regulations, has taken stern measures against Byju’s. They issued a formal notice, called a show-cause notice, to both the company and its founder CEO, Byju Raveendran.
Violation In International Funds
This notice demands an explanation of the alleged violations. The seriousness of the situation is evident, as the ED has been scrutinizing Byju’s international funds, particularly those coming from West Asian countries.
The investigation into Byju’s offshore funding is complex and ongoing. The ED is collaborating with global intelligence agencies to understand the intricacies of these alleged violations. This indicates the international scope of the investigation and the need for specialized financial analysis.
Also Read: Infosys Announces 80% Bonus For Employees Based On Performances
7 Summons Since 2020
Byju Raveendran, the CEO, has received at least seven summonses from the ED since 2020, compelling him to appear for questioning. Despite this, he appeared only once, following multiple raids on his office and related premises earlier this year.
The ED had to issue a lookout circular (LOC) against him, a measure used to monitor individuals’ international travel, due to his initial reluctance to appear before the agency.
Currently, Raveendran is abroad but is said to be cooperating with the legal requirements of the investigation. He has been responsive to the ED’s communications and inquiries.
Several Allegations Against Byju’s
Apart from the FEMA violation, the ED is investigating several other complaints against Byju’s. These include issues related to the company’s international sponsorships, fund parking in foreign territories, and audit-related concerns.
Moreover, there are allegations from several parents who claim that Byju’s took loans on high interest without proper consent, using their documents without their knowledge. These are serious charges that add to the company’s woes.
The Ministry of Corporate Affairs (MCA) might also get involved in reviewing Byju’s audits and annual financial reports once the ED completes its investigation.
