ED Issues Show Cause Notice To Byju's For Alleged Rs 9,000 Crore FEMA Violations, Firm Denies

Byju's has received a show cause notice from Enforcement Directorate (ED) over alleged Foreign Exchange Management Act (FEMA) violations worth Rs 9,000 crore, CNBC-TV 18 reported citing sources.

As per the report, the notice extends to Byju Raveendran and Think and Learn Private Limited (TLPL). However, the company has strongly denied the report, saying, "BYJU’S unequivocally denies media reports that insinuate it has received a notice from the Enforcement Department. The company has not received any such communication from the Enforcement Department."

As per an Economic Times report, the notice has not been issued yet but the agency will soon be releasing a statement on the matter.

Earlier this year, ED had conducted raids at the premises of the company in Bengaluru. The agency had said at the time the company had remitted Rs 9,754 crore to foreign jurisdictions in the name of overseas direct investment. Not only ED, Ministry of Corporate Affairs (MCA) and Directorate General of GST Intelligence (DGGI) have also kept the company under their radar.

The company had come under scrutiny after delay in releasing its audited financial statements which led to the resignation of its auditor Deloitte in June. After a long wait, Byju's had recently released its financial statements which pegged its losses Rs 2,253 crore in FY22. The EBITDA loss of the core business had stood at Rs 2,406 crore in FY21. Notably, the financials did not include the numbers for Aakash Educational Institute and other entities acquired by its parent entity TLPL.