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Thursday, June 20, 2024

Did Byju’s violate FEMA by Rs 9,000 crore? ED issues show-cause notice

The Enforcement Directorate (ED) has issued a show-cause notice to Byju’s for violating FEMA by Rs 9,000 crore. The corporation denied having received notice and violating FEMA standards. The ED said Byju’s financial statements were not prepared since 2020-21.

The Enforcement Directorate (ED) has issued a show-cause notice to Byju’s for violating FEMA to the tune of Rs 9,000 crore. According to the Economic Times, Byju Raveendaran, creator of Byju’s, and Think and Learn Pvt Ltd. received the warning.

However, the corporation denied getting any notice in a statement. Byju’s rejects media allegations that it got an Enforcement Department notice. It was said that the Enforcement Department had not contacted the company.

In April, the ED searched and seized three Bengaluru properties under the FEMA in connection with a case against Raveendaran and his company. The search and seizure process yielded damaging documents and digital material, according to ED authorities.

The ED officials further reported that the company received over Rs 28,000 crore in foreign direct investment between 2011 and 2023 and remitted Rs 9,754 crore to various foreign jurisdictions.

According to ED investigators, the company had spent about Rs 944 crore on marketing and promotion, including money moved outside. A corporate spokeswoman denied the charges, saying the ED visit was part of a normal FEMA review and the company had not broken any FEMA regulations.

A BJYU legal spokeswoman said the ED action was a “routine inquiry” and the company has been “completely transparent with the authorities and have provided them with all the information they have requested.”

The ED claimed Think & Learn Pvt Ltd. has not prepared its financial statements since 2020-21 and has not had them audited, as required. Thus, the banks are verifying the company’s data, he said.

Conclusion

The Enforcement Directorate (ED) has issued a show-cause notice to Byju for violating FEMA by Rs 9,000 crore. The notice went to Byju Raveendaran, Byju’s and Think and Learn Pvt Ltd. founder. But the corporation denied receiving warning. The ED searched and seized three Bengaluru, Karnataka, properties under FEMA. Between 2011 and 2023, the company received over Rs 28,000 crore in foreign direct investment and remitted Rs 9,754 crore abroad. The corporation spent about Rs 944 crore on marketing and advertising. A firm spokeswoman denied the charges, saying the ED action was a “routine inquiry” and the company was transparent with authorities. The ED claimed the company has not prepared its financial statements since 2020-21 and has not had them audited, as required. Some banks are questioning the company’s figures.

Sunil Pandey
Sunil Pandey

The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

Sunil Pandey
The business professional who loves penning down his thoughts/ insights on business, entrepreneurship, & startups. His ability to break down complex business concepts into easy & concise write-ups makes him a wonderful author. He believes that writing is a powerful tool for communication and education.

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