Enforcement Directorate Urges Bureau of Immigration for Renewed Travel Restrictions in Byju’s FEMA Violation Probe to Safeguard Investor Interests.
ED Requests Revised Look-Out Circular Against Byju Raveendran, Founder of Byju’s. The Enforcement Directorate (ED) has reportedly urged the Bureau of Immigration (BOI) to issue a revised look-out circular (LOC) against Byju Raveendran, the founder and CEO of Byju’s, as reported by Economic Times. The central agency approached BOI earlier this month to ensure Raveendran remains within the country. A previous LOC ‘on intimation’ was issued against Raveendran over a year and a half ago at the request of the ED’s Kochi office. However, the investigation was later transferred to the agency’s Bengaluru office.
The ‘On Intimation’ Look-Out Circular Involves Immigration Authorities Informing Investigating Agencies of Individual’s Overseas Travel Plans Without Preventing Departure.
The ED’s Bengaluru Office Advocates for New Look-Out Circular Against Raveendran Amid FEMA Violations Probe. According to a report by Economic Times, the Enforcement Directorate’s Bengaluru office, currently investigating alleged violations of the Foreign Exchange Management Act (FEMA), has recently recommended the issuance of a new look-out circular (LOC) against Raveendran to prevent him from leaving the country. Raveendran has reportedly been traveling between Delhi and Dubai for the past three years and was recently spotted in Bengaluru and Delhi. He informed Economic Times that he is currently in Dubai and plans to travel to Singapore tomorrow. The decision to seek a “revised” LOC from the Bureau of Immigration is said to be driven by the “interest of investors,” as stated by one of the sources.
A senior government official has emphasized that even if Raveendran is abroad, the issued LOC would prevent him from leaving the country upon his return, thus safeguarding the interests of investors. The Enforcement Directorate (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 the Foreign Exchange Management Act (FEMA). The ED initiated investigations based on various complaints regarding foreign investments received by Byju’s and its business practices. According to a statement by the ED, 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.
In April 2023, searches were conducted at various Byju’s locations and Raveendran’s residence, 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.