ED show cause notice to Baiju for Rs.9 thousand crores
Byjus, a struggling education services company, received another major shock. Enforcement Directorate (ED) issued notice demanding payment of Rs.9 thousand crore for violating foreign financing laws. However, Company X said on Twitter that they have not received any communication from the authorities.
ED claims that Byjus received foreign direct investment (FDI) of around 28 lakh rupees between 2011 and 2023. Also, central government sources claimed that around 9,754 crore was sent in the name of direct overseas, ignoring laws related to foreign currency.
Byjus X responded to media reports on the ED notice. They say they have not received any communication from the central government. He said he condemned the ongoing campaign as if Byjus was committing FEMA violations. business experts say the ED notice is a key development for the country’s most valuable startups.
Parent company Baiju Think and Learn Pvt Ltd was founded in 2011 by engineer and professor Baiju Ravindran and his wife Divya Gokulnath. Initially they offered online learning programs for competitive exams. Due to its success, in 2015 Byzoo’s Learning App was launched. The app became so popular in a short time that two years later they launched a math app for kids and another app for parents to track their progress.
— BYJU’S (@BYJUS) November 21, 2023
As of 2018 Byjus has 1.5 million users. The application is also spread in small towns and rural areas of the country. Even during Corona, when schools and educational institutions were closed across the country, children went to digital education in mandatory situations. Byjus, which reached the top position .. recorded a large loss in 2021 and its value declined gradually. Then went under the radar of law enforcement agencies.
As the schools reopened after the Corona subsided, the popularity of the application decreased. Also there were serious allegations about his performance. Many students and their parents stated that they had to buy expensive courses. Byjus also had to lay off thousands of employees to cut costs.
Earlier this year, the ED raided Byjus’ office in Bengaluru on allegations that he had violated laws governing foreign exchange. The company also ran into problems overseas, with creditors going to US courts accusing Byzoos of violating payment and loan agreements. A case was also registered against Byjus for allegedly harassing creditors.