ED conducts searches at Byju’s for FEMA violations and financial irregularities
The Directorate of Enforcement (ED) recently conducted searches and seizures at three locations linked to Byju’s Raveendran, CEO and Founder of BYJU’s, and his edtech company, citing provisions of the Foreign Exchange Management Act (FEMA), as per media reported.
While the company spokesperson referred to the ED’s visit as part of a routine FEMA investigation, the ED revealed that the company received Rs 28,000 crore in foreign direct investment from 2011 to 2023 and transferred Rs 9754 crore to various foreign jurisdictions.
The company has not released financial statements since 2020-21, and the accounts remain unaudited. Moreover, the Founder and CEO, Byju Raveendran, was reportedly evasive and failed to appear despite multiple summonses. The ed-tech giant’s FY21 financial disclosures revealed a loss of Rs 4,589 crore, the largest-ever disclosed by an Indian firm, and a 3.3 per cent drop in revenue.