The Enforcement Directorate (ED) has reportedly issued a notice to edtech giant Byju's, demanding a payment of Rs 9,000 crore for alleged violations of foreign funding laws.
According to a report from NDTV, Byju's received around Rs 28,000 crore in foreign direct investment (FDI) between 2011 and 2023, remitting approximately Rs 9,754 crore to foreign jurisdictions during the same period as overseas direct investment.
Byju's, however, has denied receiving any such communication from authorities and refuted allegations of violating the Foreign Exchange Management Act (FEMA).
In response to the reports, Byju's posted a statement on its official platform, stating, "Byju's unequivocally denies media reports that insinuates Byju's of any FEMA violation. The company has not received any such communication from authorities."
This development comes amid challenges for Byju's, once considered India's most valued startup.
The company, founded in 2011 by Byju Raveendran and Divya Gokulnath, initially provided online learning programmes for competitive exams and later expanded with the launch of the Byju's learning app in 2015.
The app gained significant popularity during the COVID-19 pandemic when schools transitioned to digital education.
However, Byju's faced a downturn, posting substantial losses in 2021, leading to a gradual decline in its value.
The company's acquisition spree and allegations of coercive sales practices and mistreatment of employees have contributed to its challenges.
The ED had previously raided Byju's office in Bengaluru earlier this year over suspected violations of foreign funding laws.
Furthermore, Byju's encountered legal troubles abroad, with lenders filing a case in a US court, accusing the company of defaulting on payments and breaching loan agreements.
In response, Byju's sued the lenders, alleging harassment.
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