LI Network
Published on: 30 April 2023 at 11:44 IST
On Saturday, the Enforcement Directorate (ED) conducted searches at three locations in Bengaluru that are associated with Byju’s, an EdTech company.
The searches were conducted as part of the ED’s investigation into suspected violations of foreign exchange laws. Byju’s stated that the searches were a routine inquiry and that they have cooperated with the authorities and will continue to do so.
The ED reported that it discovered incriminating documents and digital data during the searches.
Additionally, the company received foreign direct investment amounting to approximately Rs 28,000 crore between 2011 and 2023, and it transferred approximately Rs 9,754 crore to various foreign jurisdictions during the same time period for overseas direct investment, according to the ED’s findings from the searches.
According to the ED statement, the company has recorded approximately Rs 944 crore as advertising and marketing expenses, which includes the sum sent to foreign jurisdictions. The company has not prepared its financial statements since the 2020-21 financial year, and it has not had its accounts audited, which is mandatory.
Therefore, the accuracy of the figures provided by the company is being verified with the banks, according to the statement.
The CEO’s residence and the office of Think & Learn Private Limited, the parent company of Byju’s, were among the locations searched. The ED began investigating Byju’s after receiving complaints from several individuals.
The ED issued multiple summonses to the CEO, but he did not appear during the investigation. The ED stated that further investigation is ongoing.
In response, Byju’s stated that it has provided all requested information to the authorities and has been transparent with them. The company expressed confidence in the integrity of its operations and its commitment to compliance and ethics.
The company assured customers that it would continue to provide high-quality educational products and services, and that it was business as usual.