NEW DELHI: The Enforcement Directorate has sent a note to the Bureau of Immigration (BOI) requesting it to issue a revised look-out circular (LOC) against Byju Raveendran, the founder CEO of the troubled ed-tech firm Byju’s as part of its probe into alleged violation of provisions of the Foreign Exchange Management Act (FEMA, sources privy to the development said.
The ED has asked the BOI to upgrade the LC so that Raveendran is not allowed to go abroad from any Indian land, air or land port before the investigating officer (IO) of the case is informed, the sources said.
On a previous occasion, nearly a year-and-a-half ago, the LOC ‘on intimation’ had been issued against Raveendran, on the request from the ED’s Kochi office. But subsequently, the probe into the matter was shifted to the ED’s Bengaluru office, which has sent the request for the issuance of the revised LOC against him, the sources said.
They said that the decision to seek a ‘revised’ LOC from BOI is done to ensure that the ‘interest of investors’ is protected.
According to the sources, as per the new LOC, it will entirely depend on the decision of the IO to either totally stop his foreign travel or permit him to go abroad after asking him case related questions and getting assurances.
The LC, which is in operation till now against Raveendran, only stipulated the immigration authorities to inform the ED about his entry and exit from the country. The agency, in November last year, had slapped a show cause notice against BYJU’s and Raveendran for alleged violation of the FEMA in making transactions in foreign currencies worth Rs 9,362.35 crore.
The sources also emphasised 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.
The ED has made out multiple grounds for charging the ed-tech company and its chief promoter, which included its failure in submitting documents of imports against advance remittances made outside India; failing to realise proceeds of exports made outside India by delayed filing of documents against the Foreign Direct Investment (FDI) received into the company, among others.
According to reports the Karnataka High Court had on Wednesday refused to stay an emergency shareholder meeting called by select investors of Think and Learn Pvt Ltd - the owner of BYJU’S - to oust Raveendran and his family from the leadership positions in the ed-tech firm.
The court gave an interim relief that any resolution passed at the EGM scheduled on Friday cannot be implemented before the next court hearing.
Select shareholders of BYJU'S have issued an EGM notice to be held on February 23, demanding a change in leadership of the ed-tech firm while alleging several anomalies in their functioning.
Raveendran on his part, however, issued a letter to shareholders on Wednesday appealing them to participate in the USD 200 million rights issue floated by the company. He later shared that the rights issue has been fully subscribed.
