The Enforcement Directorate (ED) of India has reportedly issued a show-cause notice to the educational technology company BYJU'S and its parent company Think and Learn Pvt. Ltd., citing alleged violations of the Foreign Exchange Management Act (FEMA) that could amount to penalties worth ₹9,000 crore. This development follows the ED's operations in April at three Bengaluru locations associated with BYJU'S, where they claimed to have discovered evidence suggesting misuse of foreign direct investment (FDI) funds.
According to the ED, BYJU'S may have improperly transferred ₹9,754 crore to foreign jurisdictions as part of their international expansion strategy and listed ₹944 crore (INR100 crore = approx. USD12 million) as overseas advertising expenses. These allegations stem from an investigation into the company's financial practices over the past decade, during which BYJU'S is said to have received ₹28,000 crore in FDI. The ED is confirming these numbers with financial institutions.
Despite these claims, a spokesperson for BYJU'S and their legal team contested receiving any such notice from the ED and described the items seized during the April operations as part of regular FEMA compliance procedures.
In addition to the ED's inquiry, BYJU'S continues to face scrutiny from the Ministry of Corporate Affairs and the Directorate General of GST Intelligence regarding its financial affairs.
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