ED seeks look-out notice against Byju CEO in FEMA violation probe

The Enforcement Directorate (ED) has sought a look-out notice against Byju Raveendran, CEO of ed-tech giant Byju’s, as part of an ongoing investigation into alleged violations of the Foreign Exchange Management Act (FEMA) totaling Rs 9,362.35 crore. Last November, the ED issued showcause notices to Think & Learn Private Limited, Byju’s parent company, and Raveendran.

In response to the investigation, the ED has requested the Bureau of Immigration to issue a look-out-circular (LOC) to prevent Raveendran from leaving the country without notifying the investigation officer. An official confirmed the issuance of a fresh request to the Immigration Department, resulting in the activation of an LOC against the CEO.

The investigation was initiated based on multiple complaints regarding foreign investments received by Think and Learn Private Ltd and the business practices of the company. The ED spokesperson revealed that the company was alleged to have made significant foreign remittances and investments abroad, potentially violating FEMA, 1999, leading to revenue loss for the Central government.

During the investigation, the ED conducted searches at the premises of Think and Learn Private Limited and Raveendran's residence in April. Documents related to investments received by the company and overseas investments were seized. Statements from Raveendran and the Chief Financial Officer were recorded during the process.

The investigation uncovered FEMA contraventions, including failure to submit documents for imports against advance remittances, delayed filing of documents for Foreign Direct Investment (FDI), and failure to allot shares against FDI received. In April, the ED reported the recovery of incriminating documents and digital data during the searches.

As the ED intensifies its probe, the look-out notice against Byju Raveendran adds another dimension to the unfolding developments, underscoring the gravity of the allegations against one of India's prominent ed-tech figures.