FEMA violations: ED asks Byju’s to pay Rs 9,000 cr for violating foreign funding laws

FEMA violation: Byju's, a prominent edtech firm and one of the most valuable startups faces FEMA allegations. 

The Enforcement Directorate found Foreign Exchange Management Act (FEMA) violations in edtech major Byju's and issued notice to Indian edtech giant asking to pay Rs 9,000 crore crore for allegedly violating foreign funding laws. 

This allegation comes after the recent searches and seizures by ED at the hree locations in Bengaluru in a case involving founder Byju Raveendaran and his company 'Think & Learn Private Limited' under the provisions of the FEMA.

However, denying the reports, spokesperson of Byju’s issued a statement on its official Twitter handle and wrote, "Byju's unequivocally denies media reports that insinuates Byju's of any FEMA violations. The company has not received any such communication from authorities.”

pic.twitter.com/6fWEQUd7X1 — BYJU'S (@BYJUS) November 21, 2023

Since 2011, Enforcement Directorate has been raiding and conducting searches in the edtech unicorn's FEMA compliance. 

According to the ED, officials also found that the company got around Rs 28,000 crore in foreign direct investment between 2011 and 2023. Furthermore, the ED stated that the company remitted approximately Rs 9,754 crore (approximately) to various foreign jurisdictions in the name of overseas direct investment during the same period.

The company has booked around Rs 944 Crore in the name of Advertisement and Marketing expenses including the amount remitted to foreign jurisdiction. The company has not prepared its financial statements since the financial year 2020-21 and has not got the accounts, audited which is mandatory. 

- With inputs from agencies

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