An LOC ‘on intimation’ was previously issued against Raveendran over a year and a half ago at the request of the ED’s Kochi office. However, the investigation was later transferred to the Bengaluru office, according to an ET report. This type of LOC involves immigration authorities notifying a probe agency if the individual travels abroad, but it does not restrict the person from leaving the country.
Sources told the financial daily that the ED’s Bengaluru office, currently investigating alleged Foreign Exchange Management Act (FEMA) violations, has concluded that an LOC against Raveendran is necessary to prevent his departure from the country.
Byju Raveendran, primarily shuttling between Delhi and Dubai for the past three years, was reported to have been in Bengaluru earlier this week, according to informed sources. Last week, he was also reportedly in Delhi for business purposes. Raveendran confirmed to ET that he is presently in Dubai, having departed for the emirate earlier this week, with plans to travel to Singapore the following day.
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Citing the “interest of investors” as the rationale, one of the aforementioned individuals disclosed the decision to seek a “revised” LOC from the BOI.
A senior government official emphasized that even if Raveendran is abroad, he will be prevented from leaving the country upon his return once the LOC is issued.
The issuance of the LOC will ensure the protection of investors’ interests and the seamless progression of the case to its resolution, the source stated.
Last November, the agency issued show-cause notices to Byju’s parent company, Think & Learn Pvt Ltd, and its founder Byju Raveendran, citing alleged violations totaling Rs 9,362.35 crore under FEMA. The ED stated that investigations were initiated based on complaints regarding foreign investment received by Byju’s and its business practices.
“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,” ED had said.
The ED conducted searches at Byju’s premises and Raveendran’s residence on April 27-28 last year, seizing documents related to the company’s investments received and made overseas. The agency highlighted that the alleged violations stemmed from the company’s failure to realize proceeds from exports outside India and delayed filing of documents related to foreign direct investment (FDI) received. Additionally, it cited the company’s failure to file documents for remittances made outside India.