ED conducts searches at Byju’s over alleged FEMA violations

In all three premises including two official premises and a residential premises linked to the founder Byju Raveendran and his company ‘Think & Learn Private Limited’ were searched under the provisions of Foreign Exchange Management Act (FEMA).

The company runs the online education platform Byju’s.
“During the search & seizure action various incriminating documents and digital data was seized,” the statement released by the agency said.

According to the ED, FEMA searches also revealed that the company allegedly received foreign direct investment to the tune of Rs 28,000 crore during the period from 2011 to 2023. Further, the company has also remitted around 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 company has not prepared its financial statements since 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 statement further read.

Discover the stories of your interest

The investigation against the company 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 and CEO Raveendaran Byju, “…however, he always remained evasive and never appeared during the investigation,” the agency said.

The company wasn’t immediately available for a response. The story will be updated with their response once received.

The edtech firm reported losses of Rs 4,588 crore for 2020-21, up from Rs 262 crore a year ago. Its readjusted revenue from operations stood at Rs 2,280 crore, down by a significant 48% from the projected revenue of about Rs 4,400 crore cited in the unaudited results of Think & Learn Pvt Ltd, the parent company which operates the Byju’s brand.