NB Explains | ED raids three BYJUs premises in Bengaluru; Know what is the issue ?
The officials seized incriminating documents and digital data during the searches. According to the probe agency, the company has received foreign direct investment (FDI) worth Rs 28,000 crore between 2011 and 2023. Apart from this, the company also sent money to different countries in the name of FDI.
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Bengaluru, April 29 :The Enforcement Directorate raided three premises of Byju Raveendran, the founder, and CEO of ed-tech startup BYJUs. ED took this action under the provisions of the Foreign Exchange Management Act (FEMA). The raids were conducted at the premises of Byju Raveendran and his company Think and Learn Pvt Ltd.
Byju’s Raids: Why Were The Searches Conducted By ED?
The ED said the action was taken “on the basis of various complaints received from various private persons". It said several summonses were issued to founder & CEO Raveendaran Byju earlier. However, “he always remained evasive and never appeared during the investigation".
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
Byju’s Raids: What ED Finds In Searches?
The officials seized incriminating documents and digital data during the searches. According to the probe agency, the company has received foreign direct investment (FDI) worth Rs 28,000 crore between 2011 and 2023. Apart from this, the company also sent money to different countries in the name of FDI.
According to the ED, Think and Learn Pvt Ltd, which runs the ed-tech platform BYJUs, had spent around Rs 944 crore in the name of advertising and marketing expenses. At the same time, the company did not prepare its financial statements from the financial year 2020-21 and did not audit the accounts. 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 “business as usual". 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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