The Enforcement Directorate has issued a show-cause notice to ed-tech major Byju's over allegedly violating foreign exchange rules, said a report.
The ED said Byju's flouted Foreign Exchange Management Act (FEMA) norms with the violations amounting to Rs 9,000 crore, reported CNBC-TV18, citing sources. The report added that the notices were sent to Byju's parent company Think & Learn Pvt Ltd and founder Byju Raveendran.
However, Byju's has dismissed the TV channel's report that it has received any notice from the ED. "BYJU’S unequivocally denies media reports that insinuate it has received a notice from the Enforcement Department. The company has not received any such communication from the Enforcement Department,” the ed-tech company said in a statement.
The company has been struggling with one crisis after another for several months. In June, the Employees Provident Fund Organisation (EPFO) asked Byju’s to clear PF dues, after it came to light that the company has paid PF only for 738 staffers. The same month, the firm, which employs 50,000 people, laid off nearly a thousand employees across different verticals.
Before that audit firm Deloitte resigned as an auditor of Byju’s citing a delay in submitting financial statements and three senior board members, G.V. Ravishankar, MD of early-backer Peak XV Partners (formerly Sequoia Capital India), Russell Dreisenstock of Prosus and Chan Zuckerberg's Vivian Wu, also quit the firm.
The ed-tech company is also negotiating to repay a $1.2 billion loan over the last few months. The 2021-22 fiscal results of Byju's was released early in November after being delayed for a year.