ED Conducts Searches At Byju Home And Offices In Bangalore

The Enforcement Directorate (ED) is conducting search operations at three premises linked to the Byju CEO Raveendaran Byju in Bangalore. The search and seizure operation is under the provisions of the Foreign Exchange Management Act (FEMA).

The three premises - two Business properties and one residential, are linked to Raveendaran's company Think & Learn Private Limited. During the search seizure action various incriminating documents and digital data was seized.

During the search and seizure action various incriminating documents and digital data was seized. The ED noted in its release that the Think & Learn Private Limited has received foreign direct investment to the tune of Rs 28,000 crore during the period from 2011 to 2023. The company has also remitted Rs 9,754 crore to various foreign jurisdictions during the same period in the name of an overseas direct investment.

Further, it was noticed that he company has booked around Rs.944 Crore in the name of Advertisement and Marketing expenses including the amount remitted to foreign jurisdiction.

Also, it was seen that 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 are being cross examined from the banks.

The probe against the platform was initiated based on various complaints received from private persons.

During the investigation conducted by the ED, several summonses were issued to the founder Byju Raveendaran, however, he remained evasive, the press statement added.

Further investigation is under process.

The company spokesperson when contacted by Business Today, responded that "The recent visit by officials from the Enforcement Directorate (ED) in Bangalore was related to a routine inquiry under FEMA."

He further added that, "We will continue to work closely with the authorities to ensure that they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner," they said.

They spokesperson quoted that the company has been complying and transparent in the due course of the investigation. "We have been completely transparent with the authorities and have provided them with all the information they have requested. We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics".

However it is worth noting that the company declared the financial statements for FY 2020-21 after a delay of 18 months. and has not reported financial statements after that.The Bengaluru-based company, co-founded by Byju and his wife Divya Gokulnath, provides early learning, middle school education and test preparation. It was valued at USD 22 billion in a funding round in March 2022.

In October, it announced it will retrench 2,500 employees and hire 10,000 teachers over six months to rationalise cost. Byju's showed a loss of Rs 4,588 crore for 2020-21 -19 times more than that of Rs 231.69 crore in 2019-20. Revenues during the financial year 2020-21 dropped to Rs 2,428 crore from Rs 2,511 crore in FY20. The company is yet to release a financial performance report for FY22.