Byju’s says ED notice technical in nature, flags delay in filing annual reports

Embattled edtech major Byju’s said that the Enforcement Directorate’s (ED) notice to the company is restricted to technical issues like late filing of annual reports and does not relate to any financial wrongdoing such as foreign exchange violations.

This comes after ED confirmed sending a show cause notice to edtech company Think and Learn Private Limited and Byju Raveendran in the FEMA violation case. ED had also added that the complaint was filed by the ED with respect to the contraventions of the provisions of FEMA, 1999 to the tune of ₹9,362.35 crore.

The edtech major said that the queries received in the notice are technical in nature such as delay in filing Annual Performance Reports (APRs) with respect to duly compliant ODI investments of close to ₹8,000 crore that arose from the delayed statutory audit (FY22).

“Based on precedent actions by the Adjudicating Authority, we anticipate that the fines, if any, will be nominal. To cite an example, the Late Submission Fee for such reporting delays that can be imposed pursuant to the RBI regulations with respect to APRs is very nominal (Rs 7,500)...,” added the company in a statement.

The embattled edtech major confirmed receiving the ED notice days after vehemently denying possession of the same.

Valuation cuts, other issues

On 29 November, Prosus, the Dutch-listed arm of South African technology investor Naspers, has marked down the value of its stake in Byju’s, resulting in a company valuation of less than $3 billion.

This comes at a time when the Board of Control for Cricket in India (BCCI) has dragged the embattled edtech to the National Company Law Tribunal (NCLT). The case pertains to the dispute around the sponsorship rights of the Indian cricket team’s jerseys.

Meanwhile, Byju’s is facing fresh trouble as the Enforcement Directorate (ED) confirmed sending a show cause notice to the ed-tech company Think and Learn Private Limited and Byju Raveendran in the FEMA violation case.

The Bengaluru-based company has laid off thousands of employees and shifted the date of full and final payment from September to November.

Earlier this month, Manipal Group chairman Ranjan Pai bought out the debt investment by the US Hedge Fund David Kempner, in a ₹1,400-crore deal.

It has also submitted a proposal to its lenders to fully repay its $1.2 billion term loan B in the next six months. Byju’s aims to achieve this by making an initial payment of $300 million within the next three months.

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