ED raids BYJU CEO over violations of foreign funding laws, Rs 9,754 crore sent overseas under lens

The Enforcement Directorate today carried out searches at the residence and business premises of Byju Raveendran, CEO of Bengaluru-based ed-tech giant BYJU’s, for allegedly violating foreign funding laws.

The search by the investigative agency was related to a case against Raveendran and his company ‘Think & Learn Private Limited’ under the provisions of the Foreign Exchange Management Act (FEMA).

ED said several incriminating documents and data were seized during the search.

“Searches also revealed that the company has received foreign direct investment to the tune of Rs 28,000 crore (approx) during the period from 2011 to 2023,” according to a press statement issued by the investigation agency.

The company has also sent around Rs 9,754 crore to various foreign entities in the name of overseas direct investment during the same period, it added.

The investigative agency said the action was taken following “various complaints” received from private people.  Raveendran Bjyu was issued “several” summons, but he remained “evasive and never appeared” for questioning, ED said.

“The company has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited, which is mandatory,” according to the ED statement.

The company has booked around Rs 944 crore in the name of “Advertisement and Marketing expenses”, including the amount remitted to foreign jurisdictions, the ED said.

“Hence, the genuineness of the figures provided by the company are being cross-examined from the banks,” it added.

BYJU’s claimed that the searches were related to a “routine inquiry” under FEMA and the company had provided all the information that was requested by the authorities.