Embattled edtech major Byju’s founder and chief executive, Byju Raveendran, has written a note to shareholders of the company informing them that the firm is fully compliant with Foreign Exchange Management Act (FEMA) regulations.
In the letter addressed to the shareholders, Byju claimed they were fully compliant with the foreign exchange rules and said that a top law firm had conducted due diligence on its FEMA compliance. businessline has seen a copy of the email.
“An email from the law firm highlights the results of a comprehensive due diligence conducted on Byju’s. The email confirms that the due diligence found no FEMA violations at Byju’s,” said Raveendran in his communique to shareholders.
Alleged forex violations
The communication to shareholders comes at a time when news reports suggest that the Enforcement Directorate (ED) has found alleged forex violations to the tune of ₹9,000 crore by the edtech giant.
“Byju’s has maintained a cooperative stance with the ED throughout their inquiries. We have satisfactorily answered all their queries, both verbally and on record. We understand that such news can create uncertainty and concern, but we want to assure you that Byju’s continues to operate in full adherence to regulatory frameworks,” the letter added.
In April, the ED conducted searches at three premises in Bengaluru in the case involving Raveendran and his company under the provisions of FEMA. At that time, the ED asserted that it had seized various incriminating documents and digital data. The agency also revealed that the company has received foreign direct investment to the tune of approximately ₹28,000 crore during the period from 2011 to 2023.
Recently, the company had again delayed the full and final settlement of its laid-off employees. The firm had earlier shifted the payment timeline of full and final settlement for laid-off employees from September to November.
The newly-appointed CEO of Byju’s India operations, Arjun Mohan, had initiated a restructuring effort expected to impact 4,000-5,000 jobs, even as it tried to resolve the longstanding issue with Davidson Kempner, linked with covenants in its subsidiary Aakash. In November, Manipal Group chairman Ranjan Pai bought out the debt investment of the US Hedge Fund, in a ₹1,400-crore deal, which businessline had reported earlier.