Byju’s said on Wednesday that recent accusations by India’s anti-crime agency over a violation of the country’s foreign exchange rules were “technical” in nature and the startup expects that any consequences that punishment is small.
The Bengaluru-headquartered startup, India’s most valuable, said it has filed the required notification for all foreign direct investment it has received and is confident of successfully dealing with the case. Based on the authority’s “precedent actions,” Byju’s said it expects fines, “if any, to be nominal.”
The Enforcement Directorate last week accused Byju of violating rules under the Foreign Exchange Management Act (FEMA), to the tune of $1.12 billion, by failing to submit documents on imports against advance remittances and continuing of exports made outside India and delayed filing of documents for foreign direct investment received at startup.
Byju said in a statement on Wednesday evening that the ED notification did not specify any amount of the fine but “highlighted the amount of FDI/ODI (~9,000 crore) along with the deadlines that we have not forgotten at the time of reference for this quantum.”
It added: “We would like to assure you that Byju’s has maintained and will continue to maintain full compliance with all relevant FEMA regulations, as evidenced by the comprehensive due diligence conducted by reputable law firm.”
The statement is a relief for the Byju’s, which has been scrambling to resolve several challenges. Prosus, which owns about a 9% stake in Byju’s, added more concerns to the list of challenges earlier on Wednesday by signaling that it had cut the edtech giant’s valuation to less than $3 billion. .