Big Blow For Byju's: Edtech Giant Asked To Pay 9,000 Crore For Foreign Funding Laws Violation

If the already-existent crisis wasn't enough, edtech giant Byju's has been hit with another big blow. And this time, the amount is as big as Rs 9,000 crore.

What Has ED Accused Byju's Of?

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The Enforcement Directorate (ED) has found alleged forex violations to the tune of Rs 9,000 crore by edtech giant Byju¡¯s.

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How Has Byju's Reacted To The Rs 9,000 Crore Penalty?

However, Byju¡¯s spokesperson dismissed reports on the finding. ¡°Byju¡¯s unequivocally denies media reports that insinuate it has received any notice from the Enforcement Department. The company has not received any such communication from the Enforcement Department,¡± the spokesperson told ET. Byju¡¯s¡¯ legal counsel also said that no communication had been received from the Directorate. ¡°My clients have confirmed they have not received any communication from the ED until this afternoon. I am not sure where this is coming from,¡± said Zulfiquar Memon, the counsel, who is with the law firm MZM Legal.

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When Had The ED Conducted Searches In Byju's Offices?

In April, the Enforcement Directorate said that it had conducted searches on several premises linked to Byju¡¯s as part of a probe into alleged violations of the Foreign Exchange Management Act (FEMA) in investments received as well as transfers of funds abroad by the edtech startup.

In a press release then, the ED, a federal agency that probes financial crimes, said it was cross-checking the genuineness of figures provided by the company with banks.

According to the agency, the searches revealed that Think & Learn, which runs Byju¡¯s education platform, had received foreign direct investments of Rs 28,000 crore between 2011 and 2023, as per the ET report.

During that period, it had also remitted around Rs 9,754 crore to various foreign jurisdictions ¡°in the name of overseas direct investment¡±, said the release. The company had booked around Rs 944 crore as advertising and marketing expenses, including part of the amount remitted to foreign jurisdictions, it added, noting that these transactions had been cross-checked.

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