In all three premises including two official premises and a residential premises linked to the founder Byju Raveendran and his company ‘Think & Learn Private Limited’ were searched under the provisions of the Foreign Exchange Management Act (FEMA).
The company runs the online education platform Byju’s.
“During the search & seizure action various incriminating documents and digital data was seized,” the statement released by the agency said.
According to the ED, FEMA searches also revealed that the company allegedly 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 around Rs 9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment.
“…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 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 statement further read.
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The investigation against the company was initiated on the basis of various complaints received from various private persons. During the investigation conducted by the ED, several summonses were issued to the founder and CEO Raveendaran Byju, “…however, he always remained evasive and never appeared during the investigation,” the agency said.
In a statement, Byju’s said, “The recent visit by officials from the Enforcement Directorate (ED) to one of our offices in Bangalore was related to a routine inquiry under FEMA.”
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, the edtech major said.
The Prosus-backed company has been engulfed in controversies – ranging from misselling allegations to governance issues – over the past many months.
As a result, it recently implemented a four-tier internal sales process, replacing its existing direct sales programme.
The edtech firm reported losses of Rs 4,588 crore for 2020-21, up from Rs 262 crore a year ago. Its readjusted revenue from operations stood at Rs 2,280 crore, down by a significant 48% from the projected revenue of about Rs 4,400 crore cited in the unaudited results of Think & Learn Pvt Ltd, the parent company which operates the Byju’s brand.