A complete of three premises, two enterprise and one residential, of Byju’s CEO Raveendran Byju and his firm had been raided by ED lately.
The ED’s latest searches on Byju’s have led to the seizure of assorted ‘incriminating’ paperwork and knowledge, in line with the company
Edtech big Byju’s, which has had sponsorships with BCCI and FIFA World Cup up to now, is presently dealing with the warmth of the anti-money laundering company Enforcement Directorate. The ED’s latest searches have, as per the company, led to the seizure of assorted ‘incriminating’ paperwork and knowledge. Here are key factors to know in regards to the ED’s raids on Byju’s:
Byju’s Raids: Why Were The Searches Conducted By ED?
The ED has performed searches on Byju’s as a part of a overseas alternate violation probe underneath the provisions of the Foreign Exchange Management Act (FEMA). A complete of three premises, two enterprise and one residential, of Byju’s CEO Raveendran Byju and his firm had been raided.
The ED mentioned the motion was taken “on the premise of assorted complaints obtained from numerous non-public individuals”. It said several summonses were issued to founder & CEO Raveendaran Byju earlier. However, “he always remained evasive and never appeared during the investigation”.
Byju’s Raids: What ED Finds In Searches?
- During the search and seizure motion, the ED says “numerous incriminating paperwork and digital knowledge” was seized.
- Byju’s has received foreign direct investment (FDI) to the tune of about Rs 28,000 crore during the period from 2011 to 2023.
- Byju’s has also remitted around Rs 9,754 crore to various foreign jurisdictions during 2011-23 in the name of overseas direct investment (ODI).
- The company has booked around Rs 944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdiction.
- The edtech giant has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited, which is mandatory.
- The genuineness of the figures provided by the company is being cross-examined from the banks.
What Byju’s Says in Response To The Raids
The company says it is a “routine inquiry under FEMA” and “enterprise as common”. Byju’s said it will continue to work closely with the authorities to ensure that they have all the information they need.
“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,” Byju’s says.
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