On Wednesday, Byju’s addressed recent accusations from India’s crime-fighting agency regarding a breach of the nation’s foreign exchange rules, stating that the allegations are purely technical. The startup, headquartered in Bengaluru and India’s most valuable, asserted its full compliance with India’s forex regulations. Byju’s confirmed that it has submitted the required intimation for all foreign direct investment received to the relevant authority. The company is confident in its ability to successfully navigate the case, citing the authority’s past actions as a precedent. Byju’s expects any potential fines resulting from the case to be minimal.
Last week, the Enforcement Directorate accused Byju’s of violating rules under the Foreign Exchange Management Act (FEMA), amounting to $1.12 billion. The allegations included the failure to submit documents of imports against advance remittances, proceedings of exports made outside India, and delayed filing of documents for foreign direct investment received by the startup.
In a statement released on Wednesday evening, Byju’s clarified that the ED notice did not specify the quantum of the fine but highlighted the amount of foreign direct investment and overseas direct investment (~ 9,000 crore) and the missed deadlines during the reference period for this amount. Byju’s reassured stakeholders that it is committed to complete adherence to all relevant FEMA regulations, as verified by comprehensive due diligence conducted by reputable law firms.
This statement brings relief to Byju’s, which is currently addressing various challenges. On the same day, Prosus, holding about a 9% stake in Byju’s, added to the concerns by announcing a reduction in the edtech giant’s valuation to under $3 billion.
