The Enforcement Directorate (ED) has conducted searches at the Bengaluru-located residence and offices of Edtech major Byju’s CEO Raveendran Byju in connection with the Foreign Exchange Management Act (FEMA) violations.
What is Foreign Exchange Management Act (FEMA)?
It is a set of regulations that empowers the Reserve Bank of India to pass regulations and enables the Government of India to pass rules relating to foreign exchange in tune with the foreign trade policy of India.
What ED Has to Say?
The information was shared from the official Twitter handle of ED. The Tweet said, “ED has conducted searches at 3 premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA.”
“During the search, various incriminating documents and digital data were seized”, the tweet added.
ED has conducted searches at 3 premises in Bengaluru in the case of Raveendaran Byju and his company ‘Think & Learn Private Limited’ (Byju online learning platform) under the provisions of FEMA. During the search, various incriminating documents and digital data was seized.
— ED (@dir_ed) April 29, 2023
The searches revealed that the Edtech unicorn has received foreign direct investment (FDI) to the tune of ₹28,000 crores (approx) during 2011-2023. Post-pandemic the company has witnessed a huge slump in funding. Additionally, the investors have tightened their hands as the company started being a money-losing startup
What Byju Points on the Topic?
According to the reports of livemint the spokesperson said, “We have been completely transparent with the authorities and have provided them with all the information they have requested.”
“We have nothing but the utmost confidence in the integrity of our operations, and we are committed to upholding the highest standards of compliance and ethics”, the spokesperson said.
The spokesperson further said, “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.”
Who is Byju’s CEO Raveendran Byju?
Byju Raveendran is an Indian entrepreneur, investor, and educator who, with his wife Divya Gokulnath, co-founded Byju’s.
