ED Issues Look Out Notice Against Byju Raveendran Over FEMA Violations: Report
Over a year and a half ago, an LOC 'on intimation' had been issued against Raveendran at the behest of the ED’s Kochi office
The Enforcement Directorate (ED) has issued look out notice (LOC) against entrepreneur, investor, and educator Byju Raveendran over FEMA violations. Citing sources, news agency ANI reported this on Thursday. Earlier this month, the central agency made a formal request to the Bureau of Immigration (BOI) in a bid to ensure that Raveendran remains within the national borders, as per a report by the Economic Times (ET).
ED issues look out notice against entrepreneur, investor and educator Byju Raveendran: Sources
— ANI (@ANI) February 22, 2024
Over a year and a half ago, an LOC 'on intimation' had been issued against Raveendran at the behest of the ED’s Kochi office. However, the jurisdiction of the investigation was later transferred to the agency's Bengaluru office.
An LOC 'on intimation' implies that immigration authorities are notified of the individual's intended foreign travel plans without imposing any direct restrictions on their departure from the country. The ED's Bengaluru office, which is currently delving into alleged violations of the Foreign Exchange Management Act (FEMA), has recently advocated for the issuance of a fresh LOC against Raveendran. This move aims to prevent him from leaving the country, the ET reported.
Meanwhile, the Karnataka High Court declined to halt an emergency shareholder meeting called by certain investors of Think and Learn Pvt Ltd, the parent company of BYJU'S, aimed at removing the Founder and CEO, Byju Raveendran, and his family from the helm of the edtech giant.
Byju's had petitioned the Karnataka High Court seeking a stay on the Extraordinary General Meeting (EGM). However, the court granted only interim relief, ruling that any resolutions passed during the EGM scheduled for Friday cannot be enforced until the next court hearing.
The court's order highlighted concerns regarding the compliance with the procedures for convening the EGM, as outlined in Section 100 (3) of the Companies Act 2013. Additionally, the court issued an interim directive stating that "any decisions made by the shareholders of the petitioner company during the EGM scheduled for February 23, 2024, shall not be implemented until the subsequent hearing."
Certain shareholders of Byju's initiated the EGM, set to take place on February 23, calling for a leadership change within the edtech company. They have raised allegations of irregularities in the firm's operations. This decision sets the stage for further legal deliberations and underscores the ongoing tensions within one of India's leading edtech firms.
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