Baiju’s troubles increased, ED found irregularities of Rs 9000 crore under FEMA; Know what the company said

Baiju's troubles increased, ED found irregularities of Rs 9000 crore under FEMA;  Know what the company said

Byju’s News: Edtech unicorn Byju’s is facing financial crisis. Investigating agency ED (Enforcement Directorate) has caught Byju’s FEMA violation case worth Rs 9000 crore. ED has issued a show cause notice to the company. However, the company refused to provide any information saying that we have not received any message from the authorities in this regard. Earlier this year, ED had investigated the premises linked to Baiju. Several incriminating documents and digital data were seized during the search and seizure operation. The company runs a popular online education portal named Byju’s. The ED raids also revealed that the company had collected around Rs.100 crore during the period 2011 to 2023. Foreign direct investment of Rs 28000 crore has been received.

According to ED, during the same period the company also sent Rs 9,754 crore abroad in the name of foreign direct investment. The company has spent about Rs 50 crore on advertising and marketing expenses. Rs 944 crore has been collected, which also includes money sent abroad. The company did not prepare its financial statements for the financial year 2020-21 and did not get the accounts audited, which was required. Therefore, the authenticity of the data provided by the company is being verified from the banks.

The ED said the investigation was initiated against him based on complaints received from several private individuals. During the investigation conducted by the ED, several summons were issued to founder and CEO Raveendran Baiju. However, he was always evasive and never appeared during the investigation.

The company said in a post on X that we have not received any communication from the authorities in this regard. BYJU’S has once again delayed the full and final settlement of its retrenched employees. The company had earlier extended the payment deadline from September to November. Following the cash crunch, the edtech major made payments in installments on a weekly basis and cleared the dues in October. The company first laid off 1,000 employees from various divisions in June. Later in August, another 400 employees were laid off.

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