Byju’s Raids Key Points: What’s The Issue? What ED Searches Reveal, What Company Says

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A total of three premises, two business and one residential, of Byju's CEO Raveendran Byju and his company were raided by ED recently.

A total of three premises, two business and one residential, of Byju’s CEO Raveendran Byju and his company were raided by ED recently.

The ED’s recent searches on Byju’s have led to the seizure of various ‘incriminating’ documents and data, according to the agency

Edtech giant Byju’s, which has had sponsorships with BCCI and FIFA World Cup in the past, is currently facing the heat of the anti-money laundering agency Enforcement Directorate. The ED’s recent searches have, as per the agency, led to the seizure of various ‘incriminating’ documents and data. Here are key points to know about the ED’s raids on Byju’s:

Byju’s Raids: Why Were The Searches Conducted By ED?

The ED has conducted searches on Byju’s as part of a foreign exchange violation probe under the provisions of the Foreign Exchange Management Act (FEMA). A total of three premises, two business and one residential, of Byju’s CEO Raveendran Byju and his company were raided.

The ED said the action was taken “on the basis of various complaints received from various private persons”. It said several summonses were issued to founder & CEO Raveendaran Byju earlier. However, “he always remained evasive and never appeared during the investigation”.

Byju’s Raids: What ED Finds In Searches?

  • During the search and seizure action, the ED says “various incriminating documents and digital data” was seized.
  • Byju’s has received foreign direct investment (FDI) to the tune of about Rs 28,000 crore during the period from 2011 to 2023.
  • Byju’s has also remitted around Rs 9,754 crore to various foreign jurisdictions during 2011-23 in the name of overseas direct investment (ODI).
  • The company has booked around Rs 944 crore in the name of advertisement and marketing expenses, including the amount remitted to foreign jurisdiction.
  • The edtech giant has not prepared its financial statements since the financial year 2020-21 and has not got the accounts audited, which is mandatory.
  • The genuineness of the figures provided by the company is being cross-examined from the banks.

What Byju’s Says in Response To The Raids

The company says it is a “routine inquiry under FEMA” and “business as usual”. Byju’s said it will continue to work closely with the authorities to ensure that they have all the information they need.

“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,” Byju’s says.

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