Byju’s faces Rs 9,000 Crore penalty for alleged violation of Foreign Funding Laws
ED has issued a notice to educational technology giant Byju’s, with a penalty of Rs 9,000 crore for allegedly breaching foreign funding laws.
New Delhi: The Enforcement Directorate (ED) has reportedly issued a notice to educational technology giant Byju’s, demanding a payment of Rs 9,000 crore purportedly breaching foreign funding laws. Byju’s, hpwever, denies having received any such communication from the authorities.
According to sources within the ED, Byju’s is accused of receiving Foreign Direct Investment (FDI) amounting to approximately Rs 28,000 crore spanning the years 2011 to 2023. The reports claim that during the same period, Byju’s allegedly remitted around Rs 9,754 crore to foreign jurisdictions under the guise of overseas direct investment.
Byju’s has taken to its official communication channels, including its X handle, to refute the allegations. In an official statement, the edtech major asserted, “Byju’s unequivocally denies media reports that insinuate Byju’s of any FEMA violation. The company has not received any such communication from authorities.”
This denial comes amidst heightened scrutiny and financial challenges for Byju’s, which recently disclosed a loss of Rs 2,250 crore amid an escalating debt dispute. The crisis has also prompted a shift in strategy for the edtech giant, raising concerns within the industry.
The Rs 9,000 crore penalty, if enforced, could have far-reaching consequences for Byju’s, one of India’s prominent edtech players. Industry analysts are closely monitoring the situation, anticipating potential ripple effects on the company’s financial standing and market perception.