The Enforcement Directorate (ED) has reportedly issued a notice to edtech company Byju's, demanding a payment of ₹9,000 crore for alleged violations of foreign funding laws. Byju's, however, has denied receiving any such communication from the authorities. According to sources, Byju's received foreign direct investment (FDI) of around ₹28,000 crore between 2011 and 2023 and remitted approximately ₹9,754 crore to foreign jurisdictions during the same period. Byju's has stated that it has not violated any laws and has not received any notice from the authorities.
Byju's, founded in 2011 by Byju Raveendran and Divya Gokulnath, initially offered online learning programmes for competitive exams. In 2015, the company launched Byju's learning app, which saw significant growth and popularity. By 2018, the app had over 1.5 crore users and became even more popular during the COVID-19 pandemic when schools shifted to online education. However, the company's value declined after posting a massive loss in 2021, and it faced allegations of coercing parents into buying expensive courses and mistreating employees.
The ED's notice is the latest development in the company's troubles. Byju's has also faced legal issues overseas, with lenders accusing the company of defaulting on payments and breaching loan agreements. Byju's has sued the lenders in response, alleging harassment. Earlier this year, the ED conducted a raid on Byju's office in Bengaluru over suspected violations of foreign funding laws.
The alleged violations and legal troubles have contributed to the decline of Byju's, which was once India's most valued start-up. The company's acquisition spree and the subsequent drop in business after the pandemic have also been cited as reasons for its decline.
Byju's denial of the allegations and the ongoing legal battles indicate a challenging period for the edtech major. The outcome of the ED's notice and the resolution of the legal issues will have significant implications for Byju's future.
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