India’s federal financial crime-fighting agency has issued a show-cause notice to ed-tech company Byju’s for alleged violations of foreign exchange rules, CNBC-TV18 reported on Tuesday, citing sources.
The agency has alleged violations by the company worth Rs 9,000 crore ($1.1 billion) under the Foreign Exchange Management Act (FEMA), the television channel reported.
“Byju’s unequivocally denies media reports that insinuate it has received a notice from the Enforcement Directorate. The company has not received any such communication from the Enforcement Directorate,” the company said in a statement.
The Enforcement Directorate did not immediately respond to Reuters’ requests for comment.
Notices were sent to Byju’s founder Byju Raveendran and its parent company Think & Learn Pvt Ltd, CNBC-TV18 added.
In April, the Enforcement Directorate raided three premises linked to Byju’s over alleged FEMA violations, revealing a reception of nearly 280 billion rupees in foreign direct investment from 2011 to 2013.
At the time, CEO Raveendran had iterated the company’s compliance with foreign exchange laws in an internal memo, Reuters had reported.
The reported allegations come amid a string of setbacks for the company, including investors cutting its valuation and its auditor and board members quitting.
It has also been negotiating the repayment of a $1.2 billion loan in the last few months.
Backed by investors such as General Atlantic, Prosus, and Blackrock, Byju’s reported its fiscal 2021-22 results earlier this month after a year-long delay.