Enforcement Directorate Issues Lookout Notice Against Byju’s CEO, Prevents Exit from India

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  • The Enforcement Directorate has taken a significant step against Byju’s CEO Byju Raveendran by issuing a lookout notice, barring him from leaving India.
  • Meanwhile, the Karnataka High Court has declined to hold an emergency shareholder meeting initiated by select investors of Think and Learn Pvt Ltd, the parent company of Byju’s.
  • The legal proceedings surrounding Byju’s have been ongoing, with the next hearing scheduled for March 13, as per sources cited by a media outlet.
  • In November 2023, the ED had issued a show cause notice to Think and Learn Private Limited and Byju Raveendran for alleged violations of the Foreign Exchange Management Act (FEMA).
  • As the legal battle unfolds and regulatory scrutiny intensifies, the future trajectory of Byju’s and its leadership remains uncertain.

The Enforcement Directorate has taken a significant step against Byju’s CEO Byju Raveendran by issuing a lookout notice, barring him from leaving India. This development comes ahead of the edtech firm’s Extraordinary General Meeting scheduled for February 23, as reported on February 22.

According to ANI, the Enforcement Directorate has directed the Bureau of Immigration to issue the lookout notice, signalling a legal intervention in Raveendran’s travel plans.

Meanwhile, the Karnataka High Court has declined to stay an emergency shareholder meeting initiated by select investors of Think and Learn Pvt Ltd, the parent company of Byju’s, aimed at removing Raveendran and his family from the leadership roles within the company. Byju’s had sought a stay on the EGM through legal means, but the court’s interim relief only ensures that any decisions made during the meeting cannot be implemented until the next court hearing. The court cited non-compliance with the Companies Act 2013 as a key consideration in its decision.

The legal proceedings surrounding Byju’s have been ongoing, with the next hearing scheduled for March 13, as per sources cited by a media outlet. This development adds to the mounting pressure on Byju’s and its founder.

In a significant development in November 2023, the Enforcement Directorate had issued a show cause notice to Think and Learn Private Limited and Byju Raveendran for alleged violations of the Foreign Exchange Management Act (FEMA). The agency accused the company and its founder of various infractions, including failure to submit import documents, delays in filing documents related to foreign direct investment (FDI), and discrepancies in the allocation of shares against FDI received.

The ED’s complaint, filed concerning FEMA violations amounting to Rs 9,362.35 crore, underscores the seriousness of the allegations against Byju’s and its leadership. The legal scrutiny surrounding the company’s financial practices raises concerns about compliance and transparency within the edtech giant.

As the legal battle unfolds and regulatory scrutiny intensifies, the future trajectory of Byju’s and its leadership remains uncertain, with implications for the broader edtech industry and investor sentiment.

(With inputs from agencies)

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