ED Action Against BYJU's: Alleged Violations of ₹9,362.35 Crore in Forex Transactions
Mumbai, India - November 22, 2023
India's Enforcement Directorate (ED) has initiated an inquiry into Byju's, the leading edtech company in the country, for suspected breaches of the Foreign Exchange Management Act (FEMA) amounting to an astounding ₹9,362.35 crore (about USD 1.12 billion). The ED issued a notice on November 21, 2023, outlining irregularities related to the company's foreign investments and remittances.
The investigation into BYJU's began in April 2023, prompted by complaints received from various sources regarding the company's foreign exchange transactions. Searches were conducted at three locations connected to Byju's founder, Byju Raveendran, in Bengaluru, resulting in the seizure of incriminating documents and digital data.
The ED's show-cause notice alleges that BYJU's violated FEMA provisions by making substantial foreign remittances and investments abroad without the necessary approvals, causing a loss of revenue to the Indian government.
BYJU's refutes these allegations, asserting compliance with all relevant regulations and emphasizing full cooperation with the ED's investigation.
The ED issues a show-cause notice to BYJU's for suspected FEMA violations of ₹9,362.35 crore.