The CEO and creator of Byju's, Byju Raveendran, has been ordered to be placed under watch by the Bureau of Immigration, after a request from the Enforcement Directorate (ED), to keep him from leaving the country. The request was made in advance of this Friday's significant Extraordinary General Meeting (EGM) when it was rumored that certain investors wanted to remove Raveendran from office.
The Karnataka High Court ordered on Wednesday that no motions passed by Byju's shareholders during the EGM may be implemented until the final hearing. In response to a petition filed by Byju's, which attempted to stop shareholders from conducting the EGM, this ruling was made. The EGM has not been stopped, but the court has postponed any resolutions until the March 13 final hearing.
An accusation of foreign currency breaches is one of Byju's main problems, and it's probably what motivated the Enforcement Directorate to request the lookout alert against Raveendran.
Byju's was sent with show cause letters by the Enforcement Department (ED) in November 2023 for breaches of the Foreign Exchange Management Act (FEMA) totaling Rs 9362.35 crores.
Based on allegations about the foreign investment that Think and Learn Private Limited received and the company's business practices, ED opened an inquiry. Earlier, ED had claimed that the corporation had made substantial investments and international transfers that violated FEMA regulations and cost the Indian government money.
After the investigation was completed, it was discovered that Think & Learn Private Limited and Byju Raveendran had violated the FEMA's provisions by neglecting to submit import documentation against advance remittances made outside of India, failing to realize export proceeds made outside of India, delaying the filing of documentation against Foreign Direct Investment (FDI) received by the business, failing to file documentation against FDI received by the business, and failing to allot shares against FDI received by the business, according to ED.
