ED Requests Revised LOC Against Byju’s CEO Amidst Investigation
- ByStartupStory | February 22, 2024
The Enforcement Directorate (ED) has urged the Bureau of Immigration (BOI) to issue a revised look-out circular (LOC) against Byju Raveendran, CEO of Byju’s, following a report by Economic Times. The central agency’s request aims to ensure Raveendran’s presence within the country. An LOC ‘on intimation’ was previously issued against Raveendran over a year and a half ago, upon the ED Kochi office’s request, but the investigation was later transferred to the Bengaluru office.
“The ‘on intimation’ LOC involves immigration authorities informing the investigating agency about the individual’s overseas travel plans without preventing them from leaving the country,” according to sources.
The ED’s Bengaluru office, investigating alleged violations of the Foreign Exchange Management Act (FEMA), has advocated for a new LOC against Raveendran to restrict his overseas travel. Raveendran has reportedly been traveling between Delhi and Dubai for the past three years and plans to visit Singapore soon.
“The decision to seek a ‘revised’ LOC from BOI is attributed to the ‘interest of investors,'” stated one source.
Even if Raveendran is abroad, the issued LOC would prevent his departure upon return, ensuring investors’ protection, emphasized a senior government official.
“The ED issued show-cause notices in November 2023 to Byju’s parent company, Think & Learn Pvt Ltd, and Raveendran, alleging violations amounting to Rs 9,362.35 crore under FEMA,” the statement said.
“The company has been accused of making significant foreign remittances and investments abroad, allegedly violating FEMA provisions and causing revenue loss to the Indian government,” according to the ED.
“Searches were conducted at Byju’s locations and Raveendran’s residence in April 2023, resulting in the seizure of documents related to the company’s received investments and overseas investments,” the ED mentioned.
“The alleged violation was attributed to the company’s failure to realize proceeds from exports made outside India and delays in filing documents related to foreign direct investment (FDI) and remittances made abroad,” the statement concluded.
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