ED issues lookout notice against troubled Byju's CEO, says 'don't leave India': Report

The Enforcement Directorate (ED) has reportedly urged the Bureau of Immigration (BOI) to issue a lookout circular (LOC) against Byju Raveendran, the CEO and founder of the troubled Byju's. 

According to an ET report, ED wants to prevent Raveendran from leaving India amidst ongoing investigations into alleged violations of the Foreign Exchange Management Act (FEMA) by the company and its founder.

The ED's Bengaluru office, which is currently leading the probe, sought the issuance of a fresh LOC earlier this month, the report said.

What was the investigation about?

The investigation into Byju's and Raveendran comes from allegations of FEMA violations involving an amount of Rs 9,362.35 crore. The ED initiated the inquiry based on complaints regarding the foreign investments received by Byju's, its significant foreign remittances, and overseas investments that purportedly breached FEMA regulations. 

The actions are said to have caused losses to the exchequer, prompting the ED to conduct searches at Byju's locations and Raveendran's residence in April last year, where they seized documents related to the company's investments and overseas activities.

Byju traveling plans

Despite Raveendran's frequent travels between Delhi and Dubai over the past three years, the issuance of the LOC seeks to ensure he does not leave India upon his return. Raveendran, who was reported to be in Bengaluru earlier this week, informed that he is currently in Dubai and has plans to travel to Singapore.

The ED's move to issue a revised LOC is driven by the intent to protect the interests of Byju's investors and facilitate a smooth resolution of the ongoing case, the report added.

Lookout request comes ahead of EGM 

The lookout notice comes at a critical time, just ahead of Byju's Extraordinary General Meeting scheduled for February 23. The meeting has been a point of contention, with select investors seeking to remove Byju Raveendran, his wife and his brother from the company's board. 

The Karnataka High Court recently denied Byju's request to stay the emergency shareholder meeting, although it ruled that any resolutions passed during the EGM cannot be implemented until the next court hearing on March 13.

What are the allegations made by ED against Byju's?

The ED's allegations against Byju's and Raveendran include failing to submit documents for imports against advance remittances made outside India, delayed realization of export proceeds, and non-compliance with the requirements for filing documents related to Foreign Direct Investment (FDI) and remittances made by the company outside India.

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