The Enforcement Directorate has reportedly requested for a ‘look out’ circular against Byju Raveendran. The probe agency has sought the circular against the founder of the edtech major over alleged FEMA violations. At present, latest reports say that Raveendran is in Dubai and will soon travel to Singapore. ED has requested for the ‘LOC’ from the Bureau of Immigration. The agency wants to stop Raveendran from leaving India. The request by ED is in addition to the LOC ‘on intimation’ that was issued against Raveendran more than a year and a half ago.
The ‘on intimation’ look out circular means that the authorities concerned are informed about the probe against a person and his/her plans of travelling overseas without banning him/her from leaving the country.
Meanwhile, in a breather for Byju’s CEO, the Karnataka High Court said on that any resolution passed by company’s EGM won’t be applicable until the next hearing. This gives a chance to Raveendran as some investors are seeking his ouster from the company.
Byju’s, the educational technology major, has encountered a series of challenges since the outset of 2023. These setbacks include the resignation of its auditor, initiation of bankruptcy proceedings against a holding company affiliated with Byju’s by lenders, and a legal dispute in the United States questioning the terms and repayment of a loan. Among its notable shareholders are esteemed global investors such as General Atlantic, Peak XV Partners (formerly Sequoia Capital India), and the Chan Zuckerberg Initiative. Under the leadership of its founder, Raveendran, Byju’s, which boasted a valuation of $22 billion in 2022, finds itself contemplating a rights issue at a substantially diminished valuation of $200 million, marking a remarkable 99% decrease from its previous appraisal.