Byju’s Founder Byju Raveendran
A major problem has been detected in BYJU’s, a company that provides digital education to children. Earlier this year, ED had raided and searched the offices and other premises associated with Byjus. Many documents and digital data related to the company were also confiscated. After this, during the investigation, ED has found Byju’s in violation of many provisions related to the Foreign Exchange Act (FEMA). This misappropriation is worth around Rs 9,000 crore. Being a startup sector company, Byju’s has received funding from abroad on a large scale.
During the raid, ED also found out that between 2011 and 2023, the company has received foreign direct investment (FDI) of about Rs 28,000 crore. During this period, the company sent about Rs 9,754 crore for direct investment abroad. Of the money sent abroad, the company spent about Rs 944 crore in the name of advertising and marketing.
Allegations of not conducting audit also
From its investors to many board members, Byjus’s working style had already been raised. The company has not got its books audited. At present, the financial year 2023-24 is going on, whereas the company has not prepared its financial statements from 2020-21. At the same time, the financial results of the previous financial year were also released with considerable delay.
ED says that due to the company’s books of accounts not being properly audited, it is facing problems in the investigation, because it is necessary. Therefore, ED adopted another path and investigation is being done from the bank account statements of the company. ED had started investigation against Byju’s on the basis of personal complaints received from several individuals.
(This news is being updated)
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