ED renews lookout notice against Byju Raveendran amid FEMA probe into Byju's

By Team Asianet Newsable | First Published Feb 22, 2024, 11:02 AM IST

The lookout circular (LOC), which is implemented at the country's entry and exit points, was initially issued against Raveendran over a year ago when the federal agency commenced its investigation into the matter.

The Enforcement Directorate (ED) has reportedly extended its lookout circular against Byju Raveendran, the founder of the in-crisis ed-tech company Byju's, as part of its investigation into the firm under the Foreign Exchange Management Act (FEMA). The lookout circular (LOC), which is implemented at the country's entry and exit points, was initially issued against Raveendran over a year ago when the federal agency commenced its investigation into the matter.

According to reports, the LOC was renewed earlier this month, with a stipulation that the Enforcement Directorate (ED) must be notified if he leaves the country. They mentioned that Raveendran is currently believed to be outside India, according to the agency's information.

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The financial crimes probe agency has accused Think and Learn Pvt Ltd (the company behind Byju’s) of violating India’s foreign exchange laws and causing losses to the exchequer amounting to as much as Rs 9,362 crore.

“Think and Learn Private Limited and Byju Raveendran have contravened the provisions of FEMA (Foreign Exchange Management Act) 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,” the agency said in a statement in November 2023.

“The adjudicating authority under the FEMA, 1999, has issued show cause notices to Think and Learn Private Limited and Byju Raveendran on the basis of the complaint filed by ED under sub-section (3) of section 16 of FEMA, 1999, with respect to the contraventions of the provisions of FEMA, 1999, to the tune of Rs 9362.35 crore,” its statement added.

The ED's investigation stems from multiple complaints regarding foreign investments received by Byju’s and its business practices. According to the agency, Byju’s is alleged to have made substantial foreign remittances and investments abroad, purportedly violating provisions of FEMA, 1999, and resulting in revenue loss for the Indian government.

Following raids on the company in April 2023, the ED stated that FEMA searches on Byju’s revealed the receipt of approximately Rs 28,000 crore in foreign direct investment from 2011 to 2023. Additionally, the company allegedly remitted Rs 9,754 crore to various foreign jurisdictions during the same period under the guise of overseas direct investment.

Established in 2011, Byju’s, a coaching firm, experienced significant growth amid the Covid-19 pandemic. The company also possesses Aakash Educational Services, specializing in courses for medical and engineering entrance exams.

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