ED raids Byju's, claims it remitted Rs 9,754 crore to various foreign jurisdictions

The Enforcement Directorate (ED) has conducted a search and seizure operation at three premises of Raveendaran Byju and his company `Think & Learn Private Limited` in Bengaluru under the provisions of the Foreign Exchange Management Act (FEMA), an official said on Saturday (April 29).

The company runs a popular online education portal by the name of Byju's. During the searches, various incriminating documents and digital data were seized.

"FEMA searches also revealed that the company has received foreign direct investment to the tune of Rs 28,000 crore between 2011 and 2023. Further, the company has also remitted Rs 9754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment," said the official.

According to the ED, the company has booked around Rs 944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdictions. It alleged that the company has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited which is mandatory.

"Hence, the genuineness of the figures provided by the company are being cross-examined from the banks. The investigation against the platform was initiated on the basis of various complaints received from various private persons. During the investigation conducted by the probe agency, several summonses were issued to the founder and CEO Raveendaran Byju. However, he always remained evasive and never appeared during the investigation," said the official.

Further investigation into the matter is on.

Earlier this month, news reports said that Byju's had roped in a top Vedanta executive Ajay Goel as its CFO. The company has delayed filing its FY22 (2021-22) results for more than six months.