Byju's Crisis: The Directorate of Enforcement (ED) reportedly asked the Bureau of Immigration (BOI) to issue a look out circular (LOC) against Byju Raveendran, founder and CEO of Byju's, Economic Times reported after ED approached BOI earlier this month to ensure that Byju Raveendran does not leave the country. The look out circular 'on intimation' has already been issued against Byju Raveendran and was opened over one and a half years ago at the request of the ED, the report added.
The agency issued show-cause notices in November last year to Byju's parent Think & Learn Pvt Ltd and Byju Raveendran over alleged violations of ₹9,362.35 crore under FEMA. The ED said in a statement, “The company was also stated to have made significant foreign remittances outside India and investments abroad which were allegedly in contravention of provisions of FEMA, 1999, and caused loss of revenue to the government of India.”
What is look out circular?
The look out circular 'on intimation' makes immigration authorities inform a probe agency about the individual going overseas. Although, in this case, the person is not stopped from leaving the country.
Read more: Byju's crisis: Court ruling protects CEO Raveendran from ouster in upcoming shareholder EGM
Why LOC was issued against Byju Raveendran?
The ED's Bengaluru office, as it probes alleged Foreign Exchange Management Act (FEMA) violations, said that an LOC needs to be issued against Byju Raveendran in order to stop him from leaving the country, it was reported. The decision for a "revised" LOC was taken keeping in view the "interest of investors", it added.
Where is Byju Raveendran?
{{/usCountry}}The ED's Bengaluru office, as it probes alleged Foreign Exchange Management Act (FEMA) violations, said that an LOC needs to be issued against Byju Raveendran in order to stop him from leaving the country, it was reported. The decision for a "revised" LOC was taken keeping in view the "interest of investors", it added.
Where is Byju Raveendran?
{{/usCountry}}Byju Raveendran has reportedly been travelling between Delhi and Dubai for the past three years. He was in Bengaluru earlier this week, the report claimed, adding that he was in Delhi last week on a work trip.
"The LOC, once opened, will ensure that the interest of investors is safeguarded and the case is taken to its logical conclusion without any difficulty," senior government official told Economic Times.