ED seeks look out circular against Byju's founder over alleged FEMA violations
The company was also stated to have made significant foreign remittances outside India and investments abroad in violation of norms
The Enforcement Directorate (ED) has asked the Bureau of Immigration (BOI) to issue a look out circular (LOC) against Byju Raveendran, the founder and CEO of edtech major Byju's.
The move comes in the aftermath of ED approaching BOI earlier this month to ensure that Byju Raveendran does not leave the country. The lookout circular ‘on intimation’ has already been issued against Raveendran and was opened over one and a half years ago at the request of the ED, stated a report in Economic Times, citing sources.
The LOC ‘on intimation’ allows immigration authorities to inform a probe agency about an individual's overseas travel without hindering their departure.
The agency issued show-cause notices to Byju's parent Think & Learn Pvt Ltd and Raveendran in November last year over alleged FEMA violations to the tune of ₹9,362.35 crore. The ED said in a statement, “The company was also stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999, and caused loss of revenue to the government of India.”
Probing alleged FEMA violations against the company, the ED's Bengaluru office said that an LOC needs to be issued against Raveendran in order to stop him from leaving the country. The decision for a “revised” LOC was taken keeping in view the “interest of investors”, it added.
Raveendran has been frequently travelling between Delhi and Dubai for the past three years. Despite reports stating his presence in Bengaluru earlier this week, Raveendran told ET that he is currently in Dubai and plans to travel to Singapore tomorrow.
The ED initiated investigations based on various complaints related to foreign investment received by Byju's and its business conduct. The agency conducted searches at Byju's locations and Raveendran's residence on April 27-28 last year, seizing documents about the company's investments and overseas activities.
The alleged violation included the failure to realise proceeds of exports made outside India, delayed filing of documents for FDI, and non-compliance with filing requirements for remittances made outside India, causing a loss of revenue to the government of India.