The Directorate of Enforcement (ED) has conducted searches and seizure action at three premises in Bengaluru, including two business locations and a residential property, in the case of Byju Raveendaran and his firm Think & Learn Private Limited under the provisions of Foreign Exchange Management Act (FEMA) on Saturday. Byju’s is a popular online education portal that has gained immense popularity in recent times.
During the search and seizure action, the ED officials seized various incriminating documents and digital data. According to the press statement, the searches revealed that the ed-tech unicorn has received foreign direct investment (FDI) to the tune of ₹28,000 crore (approx) during 2011-2023. The company has also remitted roughly ₹9,754 crore to various foreign jurisdictions during the same period in the name of overseas direct investment.
Furthermore, Byju and his firm Think & Learn Pvt Ltd have booked around ₹944 crore in the name of advertisement and marketing expenses, including the amount remitted to the foreign jurisdiction. The ED officials also found that the company has not prepared its financial statements since FY 2021 and has not got the accounts audited.
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.
This move by the ED has caused a stir in the ed-tech industry, and people are keenly watching the developments in this case. Byju’s has been one of the fastest-growing ed-tech companies in India, and its success story has inspired many entrepreneurs. However, this recent action by the ED has raised questions about the company’s practices and has put a spotlight on the need for transparency and compliance with the law.
It remains to be seen what the future holds for Byju’s and its founder Raveendaran. However, one thing is clear – this incident has highlighted the importance of following the law and maintaining transparency in all business dealings. The ED officials have indicated that further investigation is underway, and it remains to be seen what more will be revealed in this case.
