ED searches Byju’s premises in Fema probe

BENGALURU: The ED on Saturday said it conducted “searches and seizure action” at three places belonging to Bengaluru-based edtech giant Byju’s, including its head office and founder Byju Raveendran’s city residence. The ED said this was done under provisions of the Foreign Exchange Management Act (Fema).
Various incriminating documents and digital data were seized, ED claimed.
Byju’s told TOI “We have utmost confidence in the integrity of our operations and are committed to upholding the highest standards of compliance and ethics.”
Byju’s is one of India’s most valued private firm: in its last round of funding, it was valued at $22 billion.
The ED said its “action” found the edtech company has received foreign direct investment to the tune of Rs 28,000 crore from 2011 to 2023, and it has remitted 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.
It’s not clear what is new in this information, considering the company is known to have raised about $5.8 billion (over Rs 47,000 crore at today’s exchange rate) over the years, mostly from foreign investors. It has also disclosed major global acquisitions, especially in the US.
The ED said neither Byju’s prepared its financial statements since 2020-21, nor has it got the accounts audited, which is mandatory. Hence, the genuineness of the figures provided by the company are being cross examined from the banks, it said.
The investigation, ED said, was initiated on the basis of various complaints received from individuals. The agency said several summons were issued to Raveendaran, but “he has always remained evasive and never appeared during the investigation”.