ED Seeks Look Out Circular Against Byju Raveendran

BYJU’S On The Verge Of A Turnaround, Investors Ready To Back The Company: Byju Raveendran

SUMMARY

Earlier this month, the central agency requested the BOI to issue a new LOC

The Bengaluru office of the ED has recently decided that it is necessary to issue a LOC against Raveendran to prevent him from leaving the country

An LOC 'on intimation' against Raveendran was initiated over a year and a half ago

The Directorate of Enforcement (ED) has requested the Bureau of Immigration (BOI) to issue a look out circular (LOC) against edtech major BYJU’S founder and CEO Byju Raveendran

Earlier this month, the central agency requested the BOI to issue a new LOC.

The Bengaluru office of the ED, currently investigating alleged violations of the Foreign Exchange Management Act (FEMA), has recently decided that it is necessary to issue a LOC against Raveendran to prevent him from leaving the country, ET reported.

According to a senior government official, even if Raveendran is currently overseas, issuing the LOC would ensure that upon his return to the country, he would be prohibited from leaving again.

An LOC ‘on intimation’ against Raveendran was initiated over a year and a half ago at the behest of the ED’s Kochi office. Subsequently, the investigation was transferred to the agency’s Bengaluru office.

The LOC ‘on intimation’ procedure entails immigration authorities notifying the probe agency when the individual travels overseas, without necessarily preventing the person from departing the country.

Raveendran has primarily been travelling between Delhi and Dubai for the past three years, the report said citing sources. As per sources, he was in Bengaluru earlier this week. Additionally, they said that Raveendran was in Delhi last week for a work-related trip.

However, Raveendran himself said that he is currently in Dubai, having departed for the emirate earlier this week, and he plans to travel to Singapore tomorrow.

BYJU’S investors have called an EGM on February 23 to oust CEO Raveendran, his wife Divya Gokulnath and brother Riju Ravindran from the company’s board and wrest control of the company.

Meanwhile, the Karnataka High Court on Wednesday (February 21) said that any decisions taken by shareholders at the upcoming extraordinary general meeting (EGM) will not come into effect till the next hearing.

BYJU’S has been facing a series of challenges over the past year, including significant layoffs, concerns regarding mounting debt, delays in filing financial statements, and escalating losses.

BYJU’S net loss surged 81% YoY to INR 8,245.2 Cr in FY22. Operating revenue grew more than 120% YoY to INR 5,014.6 Cr during the year under review.

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