The Enforcement Directorate has carried out searches at the business and residential premises of Byju Raveendran, CEO of ed-tech firm BYJU’s, over alleged violations of foreign funding laws. The probe agency seized several incriminating documents and data during the search.
BYJU’s responded to the searches by claiming that they were related to a routine inquiry under FEMA. The company assured that it had provided all the information requested by the authorities and remained committed to complying with the highest standards of ethics and compliance.
The probe agency said that the company had received foreign direct investment amounting to ? 28,000 crore (approx) during the period from 2011 to 2023, and had also sent around ? 9,754 crore to various foreign entities in the name of overseas direct investment during the same period. ED added that several complaints had been received from private people and that Raveendran had been issued several summons but never appeared before the ED.
Additionally, ED noted that the company had not prepared its financial statements since the financial year 2020-21 and had not had its accounts audited, which is mandatory. The company has booked around ? 944 crore in the name of ‘Advertisement and Marketing expenses’, including the amount remitted to foreign jurisdictions.
The probe agency is cross-examining the genuineness of the figures provided by the company with the banks.
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