The Enforcement Directorate on Saturday conducted searches at premises linked to Bengaluru-based ed-tech firm BYJU's, for allegedly violating foreign funding laws. Two business and one residential premises in Bengaluru were searched in connection with the case.
What is the case against Byju's all about?
Investigation against the platform was initiated by the ED on the basis of complaints received from various private persons. During investigation conducted by the probe agency, it issued several summons to the founder & CEO Byju's Raveendaran Byju. However, he always remained evasive and never appeared before the ED.
The ED said that Byju's received foreign direct investment (FDI) worth ₹28,000 crore between 2011 and 2023. It also said that the company remitted approximately ₹9,754 crore to various foreign jurisdictions during the period in the name of overseas direct investment.
The ED also says that the company Think & Learn Private Limited which is doing business under the name Byju's had booked a total of ₹944 crore in the name of marketing expenses. However, the company did not prepare its financial statements since fiscal year 2020-21 nor did it get the accounts audited.
However, Byju's legal spokesperson has said that the visit by ED officials was only related to a routine inquiry under foreign exchange laws and nothing else.
{{/usCountry}}However, Byju's legal spokesperson has said that the visit by ED officials was only related to a routine inquiry under foreign exchange laws and nothing else.
{{/usCountry}}"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 spokesperson said.
Byju's is one of India's biggest startups valued at $22 billion, with top global investors such as General Atlantic, Blackrock and Sequoia Capital investing in it over the years.
(With inputs from agencies)