A total of three premises, two commercial and one residential, of Byju CEO Raveendran Byju and his company were recently raided by ED.
ED’s recent raids on Byju’s led to the seizure of various ‘incriminating’ documents and data, the agency says
Edtech giant Byju’s, which has in the past been sponsored by BCCI and the FIFA World Cup, is currently facing heat from the agency’s law enforcement leadership. money laundering. Recent ED searches have, according to the agency, led to the seizure of various “incriminating” documents and data. Here are the key things to know about ED raids on Byju:
Byju raids: why were the searches carried out by ED?
The ED conducted research on Byju’s as part of an investigation into exchange violations under the provisions of the Foreign Exchange Management Act (FEMA). In total, three premises, two commercial and one residential, of the CEO of Byju, Raveendran Byju, and his company were searched.
The ED said the action was taken “based on various complaints received from various private individuals”. He said several summonses had been issued to Founder and CEO Raveendaran Byju earlier. However, “he always remained evasive and never appeared during the investigation”.
Byju Raids: What does ED find in research?
- During the search and seizure action, the ED claims “various incriminating documents and digital data” were seized.
- Byju’s received foreign direct investment (FDI) of around Rs 28,000 crore during the period of 2011 to 2023.
- Byju’s also disbursed around Rs 9,754 crore to various foreign jurisdictions during the period 2011-23 on behalf of Foreign Direct Investment (ODI).
- The company has set aside approximately Rs 944 crore on behalf of advertising and marketing expenses, including the amount paid to the foreign jurisdiction.
- The edtech giant has not prepared its financial statements since the 2020-21 financial year and has not had the accounts audited, which is mandatory.
- The authenticity of the figures provided by the company is cross-examined by the banks.
What Byju says in response to raids
The company says this is a “routine investigation under FEMA” and “business as usual”. Byju’s said he will continue to work closely with authorities to ensure they have all the information they need.
“We will continue to work closely with the authorities to ensure they have all the information they need, and we are confident that this matter will be resolved in a timely and satisfactory manner,” Byju’s said.
Read all the latest business news, tax news and stock market updates here
.