According to the Economic Times, the Directorate of Enforcement (ED) has requested the Bureau of Immigration (BOI) to issue a look out circular (LOC) against Byju Raveendran, the founder and CEO of Byju’s. This action was taken by the ED to ensure that Byju Raveendran does not leave the country. The report states that the look out circular was issued over one and a half years ago at the request of the ED. Additionally, in November last year, the ED issued show-cause notices to Byju’s parent company, Think & Learn Pvt Ltd, and Byju Raveendran himself, regarding alleged violations of ₹9,362.35 crore under FEMA. The ED has stated that the company made significant foreign remittances and investments abroad, which were believed to be in violation of the provisions of FEMA, 1999, and resulted in a loss of revenue for the Indian government.
What is look out circular?
The lookout circular ‘upon notification’ requires immigration authorities to alert a investigating agency regarding the individual traveling abroad. However, the person is not prevented from departing the nation in this scenario.
Why LOC was issued against Byju Raveendran?
The Bengaluru office of the Enforcement Directorate, while investigating suspected violations of the Foreign Exchange Management Act (FEMA), has stated that a Lookout Circular (LOC) must be issued against Byju Raveendran to prevent him from exiting the country, according to reports. The move to issue a “revised” LOC was made with the “interest of investors” in mind, as per the statement.
Where is Byju Raveendran?
A senior government official informed the Source that once the LOC is activated, it will guarantee the protection of investors’ interests and ensure that the case reaches a resolution smoothly.