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On April 29, 2023, the Enforcement Directorate conducted searches on three premises of Bengaluru based Byju’s, regarded as India’s most valuable edtech. The probe is connected with CEO Raveendran Byju and his company ‘Think & Learn Private Ltd.’ under FEMA (Foreign Exchange Management Act) provisions. According to the investigating agency, the edtech platform hasn’t prepared its financial statement for the last three years since FY 2020-21. The company has received a staggering Rs 28,000 crore in Foreign Domestic Investment (FDI) from 2011 till 2023. Per ED’s findings Byju’s has remitted Rs 9,754 crore to foreign jurisdiction for overseas direct investment. While Rs 944 crore spent in advertising and sundry marketing expenses which also includes amounts remitted to foreign countries. ED stated that they have confiscated various incriminating digital data and documents in the process.

ED has conducted searches at 3 premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA. During the search, various incriminating documents and digital data was seized.

— ED (@dir_ed) April 29, 2023

ED says it searched BYJU’s CEO Raveendran Byju’s office and residence in Bengaluru under FEMA and seized ‘incriminating’ documents

— Press Trust of India (@PTI_News) April 29, 2023

What amazes me is that biggest Edu-tech Startup @BYJUS didn’t prepare its financial statement for last 3 years and accounts were not audited. This is Crazy and beyond understanding because the #BYJUS is valued at $22 Billion. If they didn’t had any financial statements, how in… pic.twitter.com/UHPZ69HpiI

— Tarun Mishra (@factswithtarun) April 29, 2023

Meanwhile, company’s CEO Byju Raveendran in an internal memo remarked that the company is funded by over 70 impact investors. He states that the company has done its due diligence including FEMA compliances. The requested information during the recent search has previously been submitted, Byju wrote. He also remarked that all cross-border transactions have been duly vetted by professional advisors. In the mail he also claimed that the edtech giant has bought FDI (worth Rs 28,000 crore) to India, that’s more than any other home-grown startup.

“I wanted to take a moment to address the recent news of the Enforcement Directorate’s searches at our premises in Bangalore… I understand that this news may have caused concern…,” Raveendran told employees, in the email.#Byjus #ED #EnforcementDirectorate #Bengaluru #Startup pic.twitter.com/SDXbgeZ7tq

— Moneycontrol (@moneycontrolcom) April 30, 2023

Byju’s took all efforts to comply with all applicable foreign exchange laws: CEO tells employees on ED raid#Byjus #ED #EnforcementDirectorate #Bengaluru #Startup pic.twitter.com/0cAKbolA94

— Moneycontrol (@moneycontrolcom) April 30, 2023

Meanwhile the ED is also gonna probe Byju’s lender.

#ED is digging deep for info on #Byju‘s #loans https://t.co/IBjoD6MZvh

— Economic Times (@EconomicTimes) May 1, 2023

Byju’s had earlier laid off 2500 employees last year with some 170 employees alleging forced resignation.’ The company was criticized for roping in Lionel Messi as a brand ambassador during the layoffs.

See Also: ‘Forced Resignation’ Fiasco At Byju’s To Be Probed By The Kerala Government

See Also: The Internet Is Furious As Byju’s Hires Lionel Messi As Brand Ambassador After Firing 2500 Employees

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