The Enforcement Directorate on Saturday conducted searches at premises linked to Bengaluru-based ed-tech firm Byju’s, for allegedly violating foreign funding laws. Two business-related and one residential premises in Bengaluru were searched in connection with the case.

According to the central probe agency, Byju’s allegedly remitted abroad over Rs 9,700 crore of the Rs 28,000 crore received by Think and Learn Private Limited as Foreign Direct Investment (FDI) since 2011. The ED is probing suspected violations.

“FEMA (Foreign Exchange Management Act) searches also revealed that the company has received foreign direct investment to the tune of Rs 28,000 crore (approx) during the period from 2011 to 2023. Further, the company has also remitted Rs 9,754 crore (approx) to various foreign jurisdictions during the same period in the name of overseas direct investment,” the ED said in a statement.

“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 the 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 agency added.

Byju’s legal team spokesperson issued a statement after the searches by ED and called it a “routine inquiry under FEMA”.

“The recent visit by officials from the Enforcement Directorate (ED) in Bangalore was related to a routine inquiry under FEMA. We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics,” said Byju's legal team spokesperson

“We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner. We want to emphasize that it is business as usual at BYJU'S. We are committed to delivering high-quality educational products and services to our customers across India and the world. We remain focused on our mission to transform the way students learn and prepare for their future,” the spokesperson added.

Image source: India Today