Byju’s denies media reports claiming Rs 9000 cr notice for FEMA breaches from ED

financialexpress.com:

Edtech major Byju’s has denied media reports stating that the Enforcement Directorate (ED) has issued a notice to the company, asking it to pay Rs 9,000 crore for allegedly violating Foreign Exchange Management Act (FEMA). 

According to media reports that credited sources in the ED, Byju’s received foreign direct investment (FDI) of around Rs 28,000 crore between 2011 and 2023. The edtech firm, the sources said, remitted around Rs 9,754 crore to foreign jurisdictions during the same period in the name of overseas direct investment.

The media reports further added that the notice reportedly encompasses Byju Raveendran, the founder of Byju’s, and Think and Learn Pvt Ltd. The ED’s move comes after an inquiry into potential FEMA violations by the ed-tech company.

“Byju’s unequivocally denies media reports that insinuates Byju’s of any FEMA violation. The company has not received any such communication from authorities,” Byju’s posted on its official X handle. 

Earlier this month, Think and Learn, the parent firm of Byju’s, announced its standalone numbers for FY22. The results did not include Aakash Educational Services, WhitehatJr and other acquisitions. Byju’s said it plans to file the consolidated numbers with the ministry of corporate affairs in the next three weeks. On a standalone basis, Byju’s has narrowed its Ebitda-based loss to Rs 2,253 crore from Rs 2,406 crore in the previous financial year. Revenue increased 2.3 times to Rs 3,569 crore. Excluding acquisitions, the same had stood at Rs 1,552 crore in FY21. 

In FY21, Byju’s consolidated net loss had shot up to Rs 4,588 crore from Rs 231.69 crore in FY20. Total revenues during that year saw a marginal growth of 3.32% to Rs 2,428.39 crore.