BYJU’s clarifies after several media reports including Zee Business reports claimed that ED has issued a show-cause notice amounting to Rs 9000 crore for violations of the Foreign Exchange Management Act (FEMA) and that BYJU’s did not provide the required documentation regarding advance payments made overseas for imports.
The show cause notice which is said to be issued against BYJU Raveendran, the founder of BYJU’s. This move by the Enforcement Directorate comes after a probe into possible violations of FEMA by the firm.
BYJU’s, is currently under scrutiny by the ED over potential FEMA violations. In April, the ED gathered various documents and digital data during the searches, sources indicate that there is no evidence of FEMA violations at this early stage of the investigation.
A spokesperson from BYJU’s said, “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.”
According to FEMA searches, BYJU’s has received foreign direct investment totaling approximately Rs 28,000 crore from 2011 to 2023. Additionally, the company has remitted around Rs 9,754 crore to various foreign jurisdictions during the same period, citing overseas direct investment.
In response to the investigation, BYJU’s assured its commitment to cooperating closely with authorities, providing all necessary information. BYJU’s emphasized that its operations continue unaffected during this period.