ED Issues Look-Out Notice Against Byju Raveendran Over Violations Under FEMA

The Enforcement Directorate has reportedly issued a look out notice against entrepreneur, investor and founder of Byju's- Byju Raveendran.

In order to prevent Raveendran from going out of the country, the central agency has approached the BOI. This action is being taken while the agency's Bengaluru office is conducting an investigation into the alleged violations of the Foreign Exchange Management Act (FEMA) by the start-up and its founder, according to the reports.

A prior LOC 'on intimation' was previously issued against Raveendran over a year and a half ago, following a request made by the ED's Kochi office. Later, the investigation was later transferred to the agency's Bengaluru office.

The 'on intimation' LOC entails the immigration authorities informing the investigating agency about an individual's plans to travel abroad without preventing them from leaving the country.

According to a report in the Economic Times, the ED's Bengaluru office, which is currently investigating alleged violations of the Foreign Exchange Management Act (FEMA), has recently recommended the issuance of a new LOC against Raveendran to prevent him from leaving the country.

Reportedly, Raveendran has shuttling between Delhi and Dubai for the last three years. This week, he was seen in Bengaluru and Delhi. According to Raveendran's statement to the Economic Times, he is presently in Dubai and plans to fly to Singapore tomorrow.

The development comes at a time when the company is preparing for an important Extraordinary General Meeting (EGM) scheduled for this Friday as several investors are reportedly seeking to oust Raveendran from his position.

BYJU'S had approached the Karnataka High Court seeking a stay on the EGM but the court only gave an interim relief that any resolution passed at the EGM on Friday cannot be implemented before the next court hearing.

"It is further submitted that the conditions for convening the Extraordinary General Meeting (EGM) are not complied and no notice is issued as contemplated under Section 100 (3) of the Companies Act 2013," the court order said.

It further passed an interim order that "the decision, if any taken by the shareholders of the petitioner company in the EGM scheduled on February 23, 2024, shall not be given effect to, till the next date of hearing," the order said.