ED Searches Premises Linked To Byju's CEO In Bengaluru Over Foreign Exchange Violations

ED has conducted searches and seizure action at 3 premises (2 Business and 1 residential) in Bengaluru linked to CEO Raveendara Byju and the Edtech company under the provisions of the FEMA Act.

ED said that several summonses were issued to the founder and CEO Raveendaran Byju, however, he always remained evasive and never appeared during the investigation.

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The Enforcement Directorate (ED) has conducted searches at three premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA. During the search, various incriminating documents and digital data were seized, the probe agency said.

The Twitter handle of the investigative agency said, "ED has conducted searches at 3 premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA. During the search, various incriminating documents and digital data were seized."

ED has conducted searches at 3 premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA. During the search, various incriminating documents and digital data was seized.

— ED (@dir_ed) April 29, 2023

In a press release, ED said, "Directorate of Enforcement (ED) has conducted searches and seizure action at 3 premises (2 Business and 1 residential) in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ under the provisions of Foreign Exchange Management Act (FEMA). The company runs popular online education portal in the name of Byju’s. During the search & seizure action various incriminating documents and digital data was seized."

"FEMA searches also revealed that the company has received foreign direct investment to the tune of Rs.28000 Crore (approx.) during the period from 2011 to 2023. Further, the company has also remitted Rs 9754 Crore (approx.) to various foreign jurisdictions during the same period in the name of overseas direct investment," the release said. 

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 financial year 2020-21 and has not got the accounts, audited which is mandatory. Hence, the genuineness of the figures provided by the company is being cross-examined from the banks, the probe agency said.

Adding that investigation against the platform was initiated on the basis of various complaints received from various private persons. During investigation conducted by the ED, several summonses were issued to the founder and CEO Raveendaran Byju, however, he always remained evasive and never appeared during the investigation. Further investigation is under progress. 

According to MoneyControl, a spokesperson from Byju's said that the recent visit by officials from the ED to one of their offices in Bangalore was related to a routine inquiry under FEMA, adding that they have been completely transparent with the authorities and have provided them with all the information they have requested.