India’s Byju’s expects to pay nominal fines, if any, over foreign exchange violations

(Reuters) -Education tech company Byju’s said on Wednesday it had received a notice from India’s federal financial crime-fighting agency and expected to pay a nominal fine over alleged violations of India’s foreign exchange laws.

The Enforcement Directorate(ED) had said last week that Byju’s violated India’s Foreign Exchange Management Act (FEMA) norms by delaying the filing of documents against the foreign investment of about 80 billion Indian rupees ($960.30 million) and failing to allot shares against these.

Byju’s said the queries raised by the ED in show cause notice are “solely technical in nature,” and based on precedents, it expects fines, if any, will be nominal.

The Bengaluru, India-headquartered company said it “maintains and will continue to maintain adherence to all relevant FEMA regulations”.

Byju’s has delayed publishing its financial results, prompting auditor Deloitte and three board members to quit in June, followed by the departure of its chief financial officer and chief technology officer.

The notice comes amid a string of setbacks for the company, which was valued at $22 billion last year but was valued by tech investor Prosus NV earlier on Wednesday at under $3 billion.

($1 = 83.3070 Indian rupees)

(Reporting by Shubhendu Deshmukh in Bengaluru and Pranav Kiran; Editing by Arun Koyyur and Tasim Zahid)