 "ED issues notice to Byju's for violation of forex rules, firm denies")
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.
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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.