Reports on Tuesday claimed that edtech start-up Byju’s has been issued a show-cause notice by the Enforcement Directorate (ED) over alleged Foreign Exchange Management Act (FEMA) violations worth Rs 9,000 crore. However, the company has refuted these claims, stating that it has not received any notice from the ED. Byju’s spokesperson has categorically denied media reports and confirmed that the company has not received any communication from the enforcement department.
According to a report on CNBC-TV18, a notice was sent to Think and Learn Pvt Ltd (TLPL), the parent company of Byju’s, as well as its founder Byju Raveendran. As a result of this notice, the central agency conducted searches at three premises in Bengaluru in April under the provisions of FEMA, pertaining to the case involving Raveendran and his company. During this operation, the Enforcement Directorate (ED) claimed to have seized various incriminating documents and digital data.
In the meantime, some former employees of Byju’s have made allegations that the company has failed to meet the deadline for the full and final settlement of laid-off employees. The employee headcount at Byju’s has decreased from 50,000 to 31,000-33,000 at the group level as of October 2022.
I would like to inform you that I have yet to receive my complete and ultimate payment (FNF) within the designated timeframe of 45 days. It has been almost 90 days now, and I have not received a satisfactory resolution from the separation team or the FNF team,” expressed a former employee of BYJU’S on a social media platform.
Upon being contacted, the employee asserted that numerous employees he is acquainted with have yet to receive their full and final settlement. In an email addressed to multiple media individuals, an employee alleged that Byju’s HR manager had assured him of receiving his September salary and one month’s severance pay by October. However, he later received an email indicating a postponement of the payment until November 17. The employee expressed dissatisfaction with the continued delay in payment, while the company refrained from commenting on the matter in response to an email query.