The Enforcement Directorate (ED) has renewed its lookout circular against Byju Raveendran, founder of Byju’s, as part of its foreign exchange management act (FEMA) probe against the ed-tech firm, people familiar with the development said.
The LOC (lookout circular), which is issued at the entry and exit points of the country, against Raveendran was first issued over a year ago when the federal agency started a probe in the matter.
Officials cited above said the LOC has been renewed earlier this month with a provision that ED should be intimated about him leaving the country, adding that Raveendran is currently out of India according to agency’s information.
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HT has reached out to Byju’s for a comment on the development. The story will be updated whenever a response is received.
The financial crimes probe agency has alleged that Think and Learn Pvt Ltd (that runs Byju’s) had violated India’s foreign exchange law and caused losses to the exchequer on funds worth as much as ₹9,362 crore.
{{/usCountry}}The financial crimes probe agency has alleged that Think and Learn Pvt Ltd (that runs Byju’s) had violated India’s foreign exchange law and caused losses to the exchequer on funds worth as much as ₹9,362 crore.
{{/usCountry}}“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.
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“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 ₹9362.35 crore,” its statement said.
The ED’s probe is based on various complaints regarding the foreign investment received by Byju’s and the way it conducted its business. “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,” the agency said.
The ED had claimed in a statement after the April 2023 raids on the company that fema searches on Byju’s revealed that the company has received foreign direct investment of around ₹28,000 crore from 2011 to 2023.
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The company remitted ₹9,754 crore to various foreign jurisdictions in the same period in the name of overseas direct investment, it had claimed.
Byju’s, a coaching firm founded in 2011, witnessed a massive boom during the Covid-19 pandemic.
It also owns Aakash Educational Services, which offers courses on medical and engineering entrance exams.