The Enforcement Directorate (ED) has reportedly urged the Bureau of Immigration (BOI) to issue a look-out circular (LOC) against Byju Raveendran, the founder and CEO of Byju’s, as part of an investigation into alleged Foreign Exchange Management Act (FEMA) violations, according to sources cited by the Economic Times.
Revealing details about the recent ED circular, news agency ANI posted:
The ED has requested the Bureau of Immigration to issue a revised look-out circular against Byju Raveendran, the founder and CEO of the troubled edtech firm Byju's#ED #ByjuRaveendran #Byjus #Edtechhttps://t.co/z0uthIH8iF pic.twitter.com/ZgJRfWgoqI
— Business Standard (@bsindia) February 22, 2024
The central agency aims to prevent Raveendran from leaving the country amid ongoing investigations into the start-up and its founder for alleged FEMA violations, particularly concerning foreign investment activities.
A previous LOC ‘on intimation’ had been issued against Raveendran over a year and a half ago at the request of the ED’s Kochi office. However, with the investigation now under the Bengaluru office, the agency has sought a fresh LOC to restrict Raveendran’s overseas travel.
Despite reports indicating Raveendran’s recent presence in Bengaluru, he confirmed to ET that he is currently in Dubai and plans to travel to Singapore soon.
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ED Moves To Protect Investors’ Interests
Pursuing a “revised” LOC was made to protect investors’ interests. It is asserted that issuing the LOC will prevent Raveendran from leaving the country upon his return, ensuring a comprehensive conclusion to the case.
This development follows previous actions by the ED, including show-cause notices issued to Byju’s parent company, Think & Learn, and Raveendran in November 2023 over alleged FEMA violations amounting to ₹9,362.35 crore. The investigation stems from complaints by Byju and its business conduct regarding foreign investments.
Searches conducted at Byju’s locations and Raveendran’s residence last year yielded documents about the company’s investments and overseas activities. Alleged violations include failure to realize proceeds of exports made outside India, delayed filing of documents for foreign direct investment (FDI), and non-compliance with filing requirements for remittances made outside India, leading to revenue loss for the government of India.
