New Delhi: Byju Raveendran, founder and group CEO of Troubled edtech startup byju In a letter to shareholders of the company on Tuesday, it was said that the company has always been in full compliance with the Foreign Exchange Management Act (FEMA) regulations. In his attempt to allay shareholders’ concerns, Raveendran cited examples of a due diligence process conducted by a law firm that yielded no findings. FEMA violationIn Byju’s. “We are attaching an email from one of India’s largest and most trusted law firms, which highlights the results of the extensive due diligence conducted on Byju’s. The email confirms that due diligence found no FEMA violations at Byju’s,” Raveendran said in the letter, which was reviewed by TOI.
Raveendran’s move was in response to reports that the Enforcement Directorate (ED) has detected alleged forex violations worth Rs 9,000 crore by an edtech firm. “Byju has categorically denied media reports stating that it has received any notice from the Enforcement Directorate. The company has not received any such communication,” the firm said in a statement issued earlier in the day.
Ravindran said byju’s Has maintained a cooperative attitude with ED during interrogation. “We have answered all their questions satisfactorily, both orally and on the record. We understand that such news may create uncertainty and concern, but we want to assure you that Byju’s will continue to operate in full compliance with the regulatory framework,” Raveendran said.
In April this year, the ED had conducted searches and seizures at three premises in Bengaluru belonging to Byju under FEMA provisions. The ED had then said that the startup remitted around Rs 9,754 crore to various foreign jurisdictions in the name of foreign direct investment during 2011-2023. The company had said that Rs 944 crore was booked in the name of advertising and marketing expenses, which also included the amount remitted to foreign jurisdictions.
The latest development comes at a time when Byju’s is trying to sell some of its assets like Epic and Great Learning to repay a $1.2 billion term loan to lenders. Valued at $22 billion at its peak and having raised more than $5 billion from investors since its inception, Byju’s has been embroiled in a series of troubles, including a probe by regulators following the sudden resignation of its former auditor Deloitte and three board members in June. Byju’s, which has faced a series of valuation markdowns, was valued at $5.1 billion by its investor Prosus earlier this year.
Raveendran’s move was in response to reports that the Enforcement Directorate (ED) has detected alleged forex violations worth Rs 9,000 crore by an edtech firm. “Byju has categorically denied media reports stating that it has received any notice from the Enforcement Directorate. The company has not received any such communication,” the firm said in a statement issued earlier in the day.
Ravindran said byju’s Has maintained a cooperative attitude with ED during interrogation. “We have answered all their questions satisfactorily, both orally and on the record. We understand that such news may create uncertainty and concern, but we want to assure you that Byju’s will continue to operate in full compliance with the regulatory framework,” Raveendran said.
In April this year, the ED had conducted searches and seizures at three premises in Bengaluru belonging to Byju under FEMA provisions. The ED had then said that the startup remitted around Rs 9,754 crore to various foreign jurisdictions in the name of foreign direct investment during 2011-2023. The company had said that Rs 944 crore was booked in the name of advertising and marketing expenses, which also included the amount remitted to foreign jurisdictions.
The latest development comes at a time when Byju’s is trying to sell some of its assets like Epic and Great Learning to repay a $1.2 billion term loan to lenders. Valued at $22 billion at its peak and having raised more than $5 billion from investors since its inception, Byju’s has been embroiled in a series of troubles, including a probe by regulators following the sudden resignation of its former auditor Deloitte and three board members in June. Byju’s, which has faced a series of valuation markdowns, was valued at $5.1 billion by its investor Prosus earlier this year.
(TagstoTranslate)Business News(T)FEMA Violations(T)FEMA Rules(T)EdTech Startup Byju’s(T)ED Byju’s(T)Byju’s
