BYJU'S says ED has completed investigation; expects fine over filings delay
Nearly a week ago, the edtech firm found ED at its doorstep over violations related to the Foreign Exchange Management Act (FEMA) amounting to Rs 9,362 crore.
Troubled edtech firm said it has received a notice from the Enforcement Directorate (ED), which notes that the authority has completed its investigation into the firm.
"The queries received in the notice are solely technical in nature such as delay in filing Annual Performance Reports (APRs) with respect to duly compliant ODI investments of close to (~) Rs 8,000 crore that arose from the delayed statutory audit (FY22)," a spokesperson for BYJU'S said in a statement.
Nearly a week ago, the edtech firm found ED at its doorstep over violations related to the Foreign Exchange Management Act (FEMA) amounting to Rs 9,362 crore. The company, however, reassured investors that it was compliant with FEMA guidelines, telling investors that “one of India’s largest” law firms had conducted due diligence on it, and “found no FEMA violations” at the edtech company.
"The company has, however, filed requisite intimation contemporaneously for all FDI, which is received in accordance with the eligibility criteria in law and not affected by the alleged non-filing of APR. The company has also issued/allotted shares within the prescribed time against the FDI so received," the spokesperson said.
"This is being clarified to dispel any misgivings about wrongdoing in relation to receipt of FDI or allotment of shares."
Further, the edtech firm stated that rather than details about the fine, the notice highlighted the quantum of FDI/ODI (~ Rs 9,000 crore) along with the deadlines that we missed in the reference period for this quantum.
"We want to reassure you that BYJU'S maintains and will continue to maintain complete adherence to all relevant FEMA regulations, as verified by comprehensive due diligence conducted by reputable law firms," the spokesperson said.
Dutch investment major Prosus India recently slashed BYJU'S' valuation to less than $3 billion, putting it among its list of 'underperformers' alongside PharmEasy, Stack Overflow, Skillsoft, and Delivery Hero. Prosus said its internal rate of return for BYJU'S stood at -24%.
Edited by Kanishk Singh
