The Directorate of Enforcement (ED) has reportedly asked the Bureau of Immigration (BOI) to issue a revised look-out circular (LOC) against Byju Raveendran, founder and CEO of Byju’s, the troubled edtech firm that has been hit by a series of setbacks since early last year, says a report by Economic Times.
The central agency approached BOI earlier this month, seeking to ensure that Raveendran does not leave the country. An LOC 'on intimation' had already been issued against Raveendran more than one and a half years ago at the request of ED’s Kochi office, the report says.
However, the investigation was subsequently transferred to the agency's Bengaluru office.
The 'on intimation' LOC makes immigration authorities inform the investigating agency about the individual's overseas travel plans. In this case, the person is not stopped from leaving the country.
The ED's Bengaluru office, which is currently investigating alleged FEMA violations, has recently said that an LOC needs to be issued against Raveendran to stop him from leaving the country, according to the Economic Times report. The decision for a "revised" LOC was taken keeping in view the "interest of investors", it added.
Raveendran has reportedly been travelling between Delhi and Dubai for the past three years. Earlier this week, he was in Bengaluru and Delhi, last week on a work trip.
A senior government official emphasized that even if Raveendran is abroad, the LOC, once issued, would prevent him from leaving the country upon his return, ensuring the protection of investors' interests.
ED issued show-cause notices in November last year to Byju's parent Think & Learn Pvt Ltd and Byju Raveendran over alleged violations of ₹9,362.35 crore under FEMA.
“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,” the agency said in a statement.
The central agency initiated a probe based on various complaints regarding foreign investments received by Byju's and its business practices.
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 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.