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 Think and Learn Pvt Ltd, which operates the popular ed-tech platform Byju’s. The move comes in the wake of an ongoing investigation into alleged violations of the Foreign Exchange Management Act (FEMA) by the company.
Sources familiar with the matter revealed that the ED’s Bangalore office, spearheading the probe, has determined the necessity of an LOC to prevent Raveendran from leaving the country.
The financial crimes probe agency contends that Think and Learn Pvt Ltd has contravened India’s foreign exchange law, resulting in substantial losses to the exchequer, estimated at ₹9,362 crore.
The enforcement agency’s decision raises concerns about Raveendran’s potential departure, prompting the ED to take preemptive measures. A senior government official emphasized that even if Raveendran is currently overseas, the issuance of an LOC would restrict his departure upon his return to India.
In response to these developments, Think & Learn has initiated legal action by filing a petition in the Karnataka High Court. The petition alleges that a group of investors, including Prosus, General Atlantic, Chan Zuckerberg Initiative, Owl Ventures, and others, violated the shareholders’ agreement by calling for an extraordinary general meeting (EGM) to seek Raveendran’s removal as CEO.
The Karnataka High Court, in a statement on Wednesday evening, issued an order stipulating that any resolutions proposed during the EGM by investors would be deemed invalid until the final hearing and disposition of the petition. The court further declared that decisions taken by Byju’s shareholders in the EGM “shall not be given effect to until the next date of hearing.”
Earlier this month, Byju’s countered the investor group’s demand for Raveendran’s exit and a change in the board by asserting that they have ‘no voting rights’ for the same. Raveendran, a former teacher turned entrepreneur, alleged that certain vested interests are working against the company at a critical juncture when it is sorrounded with a severe cash crunch.*
This unfolding saga is likely to have far-reaching implications for one of India’s most prominent ed-tech companies, with legal battles and financial scrutiny converging in a complex and high-stakes scenario. The outcome of both the ED’s investigation and the legal proceedings in the Karnataka High Court will undoubtedly shape the future trajectory of Byju’s and its charismatic founder, Byju Raveendran.