Byju Raveendran Subject to Extended Scrutiny in Ongoing FEMA Probe

22 Feb 2024 , 12:57 PM

As part of its investigation under the Foreign Exchange Management Act (FEMA) against the ed-tech company, the Enforcement Directorate (ED) has extended its watch list against Byju Raveendran, the founder of Byju’s, according to news reports.

When the federal agency began an investigation into the case more than a year ago, the LOC (lookout circular), which is given at the country’s entry and exit borders, was initially issued against Raveendran.

The reports mentioned above stated that Raveendran is now outside of India based on agency intelligence, and that the LOC was renewed earlier this month with the condition that ED be notified of his departure.

According to the financial crimes investigation agency, Think and Learn Pvt Ltd, the company that owns Byju’s, is accused of breaking India’s foreign exchange rules and causing losses to the exchequer on money up to ₹9,362 Crore.

The agency said in a statement in November 2023 that ‘Think and Learn Private Limited and Byju Raveendran have contravened the provisions of the Foreign Exchange Management Act’ by failing to allot shares against FDI received into the company, by failing to realize proceeds of exports made outside India, by delaying filing of documents against the Foreign Direct Investment (FDI) received into the company, and by failing to file documents against the remittances made by the company outside India.

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