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NEW DELHI: The Enforcement Directorate (ED) has asked Bureau of Immigration to issue a look out notice against Byju Raveendran, the founder and CEO of Byju’s, to prevent him from leaving the country.
The request comes ahead of an important Extraordinary General Meeting (EGM) scheduled for this Friday, where certain investors were reportedly seeking to remove Raveendran from his position.
On Wednesday, the Karnataka High Court issued an order stating that Byju’s shareholders should not implement any resolutions during the EGM until the final hearing. This order was in response to a petition filed by Byju’s, which sought to prevent shareholders from holding the EGM. While the court has not halted the EGM, it has put any resolutions on hold until the final hearing, which will take place on March 13.
Among the key issues faced by Byju’s is an allegation of foreign exchange violations, which has likely prompted the Enforcement Directorate to push for the lookout notice against Raveendran.
In November 2023, ED had issued show cause notices to Byju’s for violations under the Foreign Exchange Management Act (FEMA), amounting to Rs 9362.35 crores.
ED initiated the investigation based on complaints regarding the foreign investment received by the company Think and Learn Private Limited and the business conduct of the company.
ED had earlier stated that the company had made significant foreign remittances and investments abroad, which were in contravention of FEMA provisions and caused revenue loss to the Indian government.
“On conclusion of the investigation, it was found that Think & Learn Private Limited & Byju Raveendran have contravened the provisions of FEMA by failing to submit documents of imports against advance remittances made outside India, by failing to realize proceeds of exports made outside India, by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, by failing to file documents against the remittances made by the company outside India and by failing to allot shares against FDI received into the company,” ED said.
The request comes ahead of an important Extraordinary General Meeting (EGM) scheduled for this Friday, where certain investors were reportedly seeking to remove Raveendran from his position.
On Wednesday, the Karnataka High Court issued an order stating that Byju’s shareholders should not implement any resolutions during the EGM until the final hearing. This order was in response to a petition filed by Byju’s, which sought to prevent shareholders from holding the EGM. While the court has not halted the EGM, it has put any resolutions on hold until the final hearing, which will take place on March 13.
Among the key issues faced by Byju’s is an allegation of foreign exchange violations, which has likely prompted the Enforcement Directorate to push for the lookout notice against Raveendran.
In November 2023, ED had issued show cause notices to Byju’s for violations under the Foreign Exchange Management Act (FEMA), amounting to Rs 9362.35 crores.
ED initiated the investigation based on complaints regarding the foreign investment received by the company Think and Learn Private Limited and the business conduct of the company.
ED had earlier stated that the company had made significant foreign remittances and investments abroad, which were in contravention of FEMA provisions and caused revenue loss to the Indian government.
“On conclusion of the investigation, it was found that Think & Learn Private Limited & Byju Raveendran have contravened the provisions of FEMA by failing to submit documents of imports against advance remittances made outside India, by failing to realize proceeds of exports made outside India, by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, by failing to file documents against the remittances made by the company outside India and by failing to allot shares against FDI received into the company,” ED said.
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