(Image source from: Timesofindia.indiatimes.com)
Byju Raveendran, the CEO of ed-tech company Byju's, has been listed on a look-out-circular (LOC) by the Bureau of Immigration, as requested by the Enforcement Directorate. This measure ensures that Raveendran cannot leave the country without informing the investigation officer. The Enforcement Directorate had previously issued showcause notices to Think & Learn Private Limited, the parent company of Byju's, and Raveendran in response to a complaint alleging violations of the Foreign Exchange Management Act (FEMA) amounting to Rs 9,362.35 crore. Following this, a fresh request was made to the Immigration Department, resulting in the issuance of the LOC against Raveendran.
The Central agency initiated an investigation based on multiple complaints regarding foreign investments received by Think and Learn Private Ltd and the company's business practices. The ED spokesperson mentioned that the company was accused of making substantial foreign remittances and investments abroad, which were believed to be in violation of FEMA, 1999, and resulted in revenue loss for the Central government. To gather further evidence, the ED conducted searches at the premises of Think and Learn Private Limited and Raveendran's residence on April 27 and 28.
The company spokesperson stated that all investments received by the company and any documents related to its overseas investments are under scrutiny. During the investigation, statements were taken from Raveendran and the Chief Financial Officer of Think and Learn. It was concluded that Think & Learn Private Limited and Raveendran had violated FEMA regulations by not providing documents for imports paid for in advance outside of India, not receiving the proceeds from exports made outside of India, filing documents related to Foreign Direct Investment (FDI) into the company late, not filing documents for remittances made by the company outside of India, and not allocating shares for FDI received into the company. In April, the ED announced that it found incriminating documents and digital data during their searches.
