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- India Accuses Byju's of $1.1B in Foreign Exchange Breaches
India Accuses Byju's of $1.1B in Foreign Exchange Breaches
Allegations of violations by financial crime agency land amid turmoil for edtech giant over missed targets, executive exits and investor clashes
Archy Ehan
November 23, 2023
India's financial crime agency accused edtech giant Byju's of over $1 billion in foreign exchange violations involving import documentation and unrealized export proceeds, exacerbating recent troubles like missed targets, executive exits, and clashes with investors.
Byju's Faces $1.12 Billion Accusation in Foreign Exchange Breaches
India's financial crime-fighting agency has accused edtech giant Byju's of violating foreign exchange laws to the tune of $1.12 billion.
The Enforcement Directorate alleges Byju's failed to submit proper import documentation, realize overseas export proceeds, and promptly file foreign investment paperwork among other lapses.
Accused of Breaking Laws and Financial Woes Pile Up
The charges follow the agency searching Byju's offices earlier this year, seizing documents.
Byju's said at the time it believes it complies with all local laws. The show cause notice exacerbates recent troubles for the once high-flying startup.
Byju's missed financial targets, its CFO exited, auditor Deloitte resigned, and investor Prosus slammed its governance.
Alleged Foreign Exchange Violations Echo CoinSwitch Case
The Enforcement Directorate has been more aggressive recently in targeting foreign exchange violations.
Last year it accused major crypto exchange CoinSwitch of similar infractions.
While denying claims, the $22 billion valued Byju's must now persuade investigators of its compliance or face potential penalties in the latest reputational blow.
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