ED Unearths Byju’s Massive Scam: Exposes Embezzlement Worth Rs 9000 Crore
A major controversy has emerged involving the digital education company Byju’s. The Enforcement Directorate (ED) has revealed that Byju’s is suspected of violating certain provisions of the Foreign Exchange Management Act (FEMA). Following an investigation, the ED has accused Byju’s of breaching FEMA regulations, resulting in an alleged financial irregularity of nearly INR 9,000 crores. The ED has seized numerous documents and digital data connected to the company as part of its probe.
The digital education company Byju’s is once again facing trouble. Earlier this year, the Enforcement Directorate (ED) conducted raids at the offices and other locations associated with Byju’s. The company’s documents and digital data have been seized during the investigation. Subsequently, it has been revealed that Byju’s is suspected of violating several provisions of the Foreign Exchange Management Act (FEMA). The alleged financial irregularity is estimated to be around INR 9,000 crores. Byju’s, a prominent player in the startup sector, has received significant funding from abroad, leading to scrutiny by the ED.
During the investigation, it has been found that between 2011 and 2023, Byju’s received approximately INR 28,000 crores in foreign direct investment (FDI). During this period, the company also remitted around INR 9,754 crores for direct investment abroad. Out of the funds received from abroad, the company spent approximately INR 944 crores on advertising and marketing. The Enforcement Directorate (ED) is looking into these financial transactions, and the company is under scrutiny for potential violations of the Foreign Exchange Management Act (FEMA).
Allegations of irregularities in the audit have been made against Byju’s. Market regulators, including many members of the board, have raised concerns about the company’s financial practices. Byju’s has been under scrutiny for not conducting audits of its books by external auditors. As of the financial year 2023-24, the company has not prepared its financial statements since the fiscal year 2020-21. During this time, financial results for the previous fiscal year were also delayed in being publicly disclosed. The Enforcement Directorate (ED) is investigating these financial irregularities, and Byju’s is facing allegations of non-compliance and potential violations of financial regulations.
It is stated by the Enforcement Directorate (ED) that due to the company’s reluctance to undergo a proper audit of its financial books, it has encountered difficulties in the investigation, making it necessary. Therefore, the ED has adopted another avenue and is conducting an investigation based on scrutinizing the company’s bank account statements. Byju’s is facing scrutiny from the ED based on complaints received from several individuals.
