The controversial ed-tech startup Byju’s, which is under the scanner of the Enforcement Directorate for possible violations of the Foreign Exchange Management Act (FEMA), ran into yet another embarrassing predicament after a family visited their office, dismantled a TV installed there and took it away.
In a viral video that has garnered more than 1.50 lakh likes since it was shared on Instagram, a family can be seen uninstalling a TV placed on the wall in Byju’s office and walking away with it. The family was reportedly forced to take action against the edtech company after it failed to pay back a refund.
The father is heard saying in the video, “Take the TV back when you give the refund.”
According to media reports, the family seen in the video requested a refund for a tablet and a learning program that they took for their son but did not utilise. After weeks of trying to get their money back and failing miserably to get past the numerous obstacles, the irate family barged into the office of the edtech company and took away the TV that was installed there. While leaving the premises with the TV the male in the video told an office staff to take the TV back once his refund was paid.
Byju’s, which was formerly regarded as one of India’s most promising businesses and reached a peak valuation of $22 billion, is currently facing numerous difficulties. These consist of heavy debt loads, problems with cash flow, unfavourable working conditions, and questionable business decisions. As a result, its estimated value has dropped to about $225 million.
Besides, the edtech giant has also been embroiled in some legal predicaments with the Board of Control for Cricket in India (BCCI) filing an insolvency plea against Byju’s before the National Company Law Tribunal (NCLT) in Bengaluru on December 4 last year. The plea is based on the claim that Byju’s has defaulted on a payment of Rs 158 crore due to a sponsorship contract for the Indian cricket team.
Additionally, the Enforcement Directorate (ED), which is probing the edtech company under the Foreign Exchange Management Act (FEMA), also extended its lookout circular against Byju Raveendran, the founder of Byju’s.
Think & Learn Pvt Ltd, the parent company of Byju and Raveendran, was served with show-cause notices by the agency in November of last year about suspected FEMA violations totalling Rs 9,362.35 crore. In a statement at the time, the ED stated that inquiries had been conducted in response to many allegations about Byju’s foreign investment and its business practices.
Over the course of April 27 and 28, of last year, the agency searched Byju’s facilities as well as Raveendran’s house. Documents relating to both domestic and foreign investments made by the company were seized.
The investigation team had pointed out that the company’s failure to recognise export revenue from sales outside of India and its tardy filing of documentation opposing Foreign Direct Investment (FDI) that it had received were the reasons for the purported infraction. It also mentioned the company’s failure to submit documentation for remittances routed outside of India.