A big feat has come to light in digital education company Byju. The Enforcement Directorate (ED) in its investigation found that Baiju had violated several provisions of FEMA. In violation of the law approximately Rs. Fraud worth Rs 9000 crore has been caught. ED has also seized many documents and digital data related to the company.
A big scam of BYJU’s came to light
A big scam of BYJU’s, a company providing digital education to children, is coming to light. Earlier this year, ED had conducted a search operation by raiding the offices and other places associated with BYJAS. Many documents and digital data related to the company have also been seized. After this, during the investigation, ED found that Baiju had violated many provisions related to the Foreign Exchange Act (FEMA). This malpractice amounts to approximately Rs. 9,000 crores. Being a startup sector company, Byju’s has received huge funding from abroad.
During these raids, ED also came to know that between 2011 and 2023, the company received approximately Rs. Foreign direct investment (FDI) of Rs 28,000 crore has been received. During this period the company has invested about Rs 10 crore. Rs 9,754 crore were sent. Out of the money sent abroad, the company spent about Rs 944 crore in the name of advertising and marketing.
Allegation of not conducting audit
From its investors to its many board members, Byjus’s working style was already established. The company has not got its accounts audited. Currently, the financial year 2023-24 is going on, while the company has not prepared its financial statements since 2020-21. At the same time, the financial results of the last financial year were also declared with great delay.
ED says that due to the company’s accounts not being properly audited, it is facing difficulties in the investigation, as is necessary. Therefore, the ED took another route and the bank account details of the company are being investigated. ED had started investigation against Byjus on the basis of personal complaints received from many people.
Ravindran Baiju did not reach the summons
During the investigation, ED issued several summons to the company’s founder and CEO Ravindran Baiju. However, he was always evasive and never appeared during the investigation. The company says that it has not yet received any official statement from ED in this regard.