Investigation is going on at Byju Ravindran’s house, office and other places.Image Credit source: LinkedIn
The stars of the Indian startup ecosystem and the unicorn company Byju’s are not taking the name of stopping their troubles. Earlier, the company had to face a lot of flak on social media for pressurizing the parents to provide tuition to the children. Now the funding of the company is also under the scanner of ED.
The Enforcement Directorate (ED) is investigating the house, office and other places of Byju’s founder and CEO Byju’s Ravindran. The investigating agency has taken action to raid various premises associated with the company on Saturday.
Questions raised on foreign funding
ED is probing a case against Ravindran Byju and his company ‘Think and Learn Private Limited’. This case pertains to violation of certain provisions of the Foreign Exchange Management Act (ie FEMA Act).
The ED says that Byju Ravindran and his company have allegedly violated certain provisions of FEMA while raising funds from abroad. That’s why the ED has raided the premises associated with Byjus in Bengaluru on Saturday. It consists of a residential complex and two offices.
Seized many documents-data
ED tried to collect many evidences during the raid. In this episode, he has seized many important documents and data related to the company and its financial transactions. ED says that it had received complaints against Byjus from many people. Not only this, the ED summoned Byju Ravindran several times, but he never appeared before the ED.
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Earlier, Byjus was also accused of purchasing a database of students and their parents, forcing parents to study tuition by showing fear of failure of their children.
Rs 28,000 crore raised from abroad
In the ED’s search, it has come to light that between 2011 and 2023, Byju’s has received foreign direct investment (FDI) of about Rs 28,000 crore. While in the same period, the company sent an amount of Rs 9,754 crore to many foreign companies. The company has sent this amount to foreign countries in the form of Overseas Direct Investment.