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New Delhi: The Enforcement Directorate (ED) has urged the Bureau of Immigration (BOI) to issue a look-out circular (LOC) against the founder and CEO of Byju,Byju Raveendran. This development comes ahead of a high-stakes Extraordinary General Meeting (EGM) scheduled for this Friday.
The upcoming EGM, set for February 23, has garnered attention as select investors seek to oust Raveendran from his position. The move is aimed at preventing Raveendran from leaving the country, and the central agency approached BOI earlier this month for the issuance of a fresh LOC.
The report said that it comes as the agency’s Bengaluru office is currently investigating alleged Foreign Exchange Management Act (FEMA) violations against the start-up and its founder. However, the Karnataka High Court has intervened, ruling that any resolutions proposed during the EGM will be deemed invalid until a final decision is reached on a petition filed by Think & Learn Pvt Ltd, Byju’s parent company.
The ‘on information’ LOC was issued against Raveendran more than a year and a half ago on the request of the ED’s Kochi office. However, the investigation was later transferred to the agency’s Bengaluru office. LOC ‘On Information’ allows immigration officials to inform the investigating agency about a person’s travel abroad without hindering their departure.
Raveendran has been frequently traveling between Delhi and Dubai for the last three years. Despite reports of his presence in Bengaluru earlier this week, Raveendran told ET that he is currently in Dubai and plans to fly to Singapore tomorrow. Sources said the decision to approach BOI for a “revised” LOC was taken keeping in mind the “interest of investors”.
A senior government official stressed that even if Raveendran was currently abroad, issuing an LOC would prevent him from leaving the country upon his return. This measure is aimed at protecting the interests of Byju’s investors and ensuring a smooth conclusion of the case. The ED had issued a show cause notice in November 2023 to Byju’s parent Think & Learn and Raveendran over alleged violations of ₹9,362.35 crore under FEMA.
The ED initiated the investigation based on various complaints related to foreign investments received by Byju’s and its business conduct. The agency had conducted searches at Byju’s premises and Raveendran’s residence on April 27-28 last year, seizing documents regarding the company’s investments and overseas activities.
The alleged violations include failure to realize the proceeds of exports made outside India, delay in filing documents for foreign direct investment (FDI), and non-compliance with filing requirements for remittances made outside India, Due to which the Government of India suffered loss of revenue.
