Byju’s offices raided by ED, foreign investment worth Rs 28,000 crore under scanner

The Enforcement Directorate (ED) on Monday raided Byju’s offices in Karnataka’s Bengaluru in connection with a case lodged against Raveendaran Byju and his company ‘Think & Learn Private Limited’.

The Enforcement Directorate (ED) has conducted searches and seizure at three premises in Karnataka’s Bengaluru in connection with a case lodged against Raveendaran Byju and his company ‘Think & Learn Private Limited’ under the provisions of the Foreign Exchange Management Act (FEMA).

The company runs a popular online education portal in the name of Byju’s. During the search and seizure action, various incriminating documents and digital data were seized, officials said.

“FEMA searches also revealed that the company has 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 Rs.9754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment,” said the agency.

According to officials, 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 allegedly not prepared its financial statements since financial year 2020-21 and has not got the accounts audited which are mandatory.

“Hence, the genuineness of the figures provided by the company are being cross examined from the banks,” the agency added.

An investigation against the platform was initiated on the basis of various complaints received from various private persons. During the investigation conducted by the ED, several summons were issued to the founder and CEO Raveendaran Byju, however, he always remained evasive and never appeared during the investigation.

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.