Tuesday, December 5, 2023
HomeBusinessED issues show cause notice to Byju's for FEMA violations; Company...

ED issues show cause notice to Byju’s for FEMA violations; Company issues denial

The Enforcement Directorate (ED) has issued a show-cause notice to edtech start-up Byju’s, alleging Foreign Exchange Management Act (FEMA) violations worth Rs 9,000 crore, according to some news reports on Tuesday. However, the company has denied this saying that it has not received any notice from ED.

“Byju has categorically denied media reports stating that it has received a notice from the enforcement department. Byju’s spokesperson said the company has not received any such communication from the enforcement department.

According to a report by CNBC-TV18, the notice was sent to Byju’s parent firm Think and Learn Pvt Ltd (TLPL) and founder Byju Raveendran. Following that notice, the central agency has searched its three premises in Bengaluru in April under the provisions of FEMA in the case involving Raveendran and his firm. During that time, ED had claimed that it had seized various incriminating documents and digital data.

Meanwhile, some former employees of Byju’s have alleged that the company has failed to meet the deadline for full and final settlement of laid-off employees. Byju’s employee headcount at the group level has declined from 50,000 to 31,000-33,000 in October 2022.

“I am writing to bring to your kind attention that I have not received my full and final (FNF) payment within the specified time limit of 45 days and it is almost 90 days and I am not getting proper resolution from the separation team FNF team and all have been found.” A former employee of BYJU’S wrote on the social media platform.

When contacted, the employee claimed that full and final settlement of many employees he knows has not been done yet. An employee sent an email to several media persons claiming that Byju’s HR manager had promised him that he would be given his salary for the month of September and one month’s severance pay by October and later he received an email which showed the date Postponed till November. 17.

The employee said that there is still a delay in payment. The company did not comment on an email query sent in this regard.



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