ED Requests Look-Out Notice against Byju's CEO Raveendran
Byju's CEO Byju Raveendran faces travel ban! The Enforcement Directorate (ED) seeks a look-out circular (LOC) amid ongoing investigation into alleged FEMA violations worth ₹9,362 crore. Check details
The Enforcement Directorate (ED) has requested a look-out-circular (LOC) against Byju's CEO Byju Raveendran, barring him from leaving the country without permission. The move comes amidst ongoing investigations into alleged foreign exchange violations by the ed-tech giant.
The ED initiated an investigation following complaints about Think & Learn Private Limited (Byju's parent company) and its business practices. They suspected contraventions of the Foreign Exchange Management Act (FEMA) amounting to Rs 9,362.35 crore.
Authorities allege the company made substantial foreign remittances and investments abroad, potentially violating FEMA regulations and causing revenue loss to the Indian government. Searches were conducted at Byju's premises and Raveendran's residence in April, seizing relevant documents.
Following investigations, the ED concluded that Think & Learn and Raveendran violated FEMA by failing to submit documentation for various financial activities, including advance remittances, export proceeds, foreign direct investment, and overseas remittances. They also allegedly failed to allocate shares corresponding to received FDI.
In April, after searches, the ED recovered "incriminating documents and digital data." They issued showcause notices to Think & Learn and Raveendran in November, detailing the alleged violations.
By seeking an LOC, the ED aims to prevent Raveendran from leaving the country while the investigation continues. This underscores the seriousness of the alleged violations and the potential consequences for Byju's.
This development adds to Byju's existing financial struggles and reputational concerns. The company recently laid off employees and faced scrutiny over its aggressive acquisition strategy. This investigation and travel ban could further impact investor confidence and overall business operations.
The outcome of the ED investigation and the fate of the LOC against Raveendran remain uncertain. This situation will likely have significant implications for both Byju's and its CEO.
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