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The ED is making a look-out circular demand against Byju’s founder, Raveendran: Report

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<p>The CEO and creator of Byju’s, the troubled edtech startup that bears his name, Byju Raveendran, has apparently received a lookout circular (LOC) request from the Enforcement Directorate (ED) to the Bureau of Immigration (BOI).</p>
<p><img decoding=”async” class=”alignnone wp-image-431445″ src=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-the-ed-is-making-a-look-out-circular-demand-against-byjus-founder-raveendran-repor.jpg” alt=”theindiaprint.com the ed is making a look out circular demand against byjus founder raveendran repor” width=”1007″ height=”671″ title=”The ED is making a look-out circular demand against Byju's founder, Raveendran: Report 3″ srcset=”https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-the-ed-is-making-a-look-out-circular-demand-against-byjus-founder-raveendran-repor.jpg 510w, https://www.theindiaprint.com/wp-content/uploads/2024/02/theindiaprint.com-the-ed-is-making-a-look-out-circular-demand-against-byjus-founder-raveendran-repor-150×100.jpg 150w” sizes=”(max-width: 1007px) 100vw, 1007px” /></p>
<p>In order to get a fresh LOC and guarantee that Raveendran stays within the nation’s borders, the central agency requested this from the BOI earlier this month, according to an ET report.</p>
<p>Raveendran had already been the subject of a “on intimation” LOC. This was done more than a year and a half ago in response to a request from the Kochi office of ED. The probe was then moved to the agency’s Bengaluru branch.</p>
<p>Under the “on intimation” LOC, immigration officials tell a detective agency when a person leaves the country, but they do not stop them from leaving.</p>
<p>In the meanwhile, the Karnataka High Court on Wednesday denied to postpone an emergency shareholder meeting that was called by a small group of investors in Think and Learn Pvt Ltd, the company that owns Byju’s, in an attempt to remove Byju Raveendran and his family from the company’s leadership.</p>
<p>Byju’s petitioned the Karnataka High Court for a stay of the EGM, but the court only granted a temporary injunction prohibiting the implementation of any resolution approved at Friday’s EGM until after the subsequent hearing.</p>
<p>According to the court decision, “it is further submitted that no notice is issued as contemplated under Section 100 (3) of the Companies Act 2013 and the conditions for convening the Extraordinary General Meeting (EGM) are not complied with.”</p>
<p>Additionally, it issued a temporary order stating that “the decision, if any, taken by the petitioner company’s shareholders in the EGM scheduled on February 23, 2024, shall not be given effect to, until the next date of hearing.” In an EGM notification scheduled for February 23, PTI Select shareholders of BYJU’S have demanded a change in the edtech company’s leadership and have identified certain irregularities in the way they have been operating.</p>
<p>General Atlantic, Peak XV, Sofina, Chan Zuckerberg, Owl, and Sands—who together own around 30% of BYJU’S—have endorsed the notification.</p>
<p>According to a statement from Byju’s, “the Karnataka High Court has passed an order stating that any resolutions proposed to be passed in the 23rd February EGM called by select investors as invalid until the final hearing and disposition of this petition,” in response to a petition filed by Think & Learn Pvt Ltd, the parent company of Byju’s.</p>
<p>Byju’s petition was submitted to the court on behalf of a number of investors, who it claimed had called for an EGM on February 23, 2024 in violation of the Companies Act, 2013, the Shareholders’ Agreement (SHA), the Articles of Association (AoA), and Own Ventures, SCHF PV Mauritius, Sands Capital Global Innovation Fund, General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, SCI Investments, and T Rowe Price Associates.</p>
<p>The court’s determination to preserve corporate governance norms and safeguard BYJU’s best interests is shown by its decision to invalidate the resolutions approved by the EGM and provide immediate relief to Byju’s. According to Byju’s statement, the decision guarantees that the business may go on with stability and concentration while protecting the interests of all stakeholders.</p>
<p>However, sources close to investors claimed it is inaccurate to claim the court has declared the resolutions null and void. According to the source, the EGM will hold a vote to remove Byju from his position as CEO.</p>
<p>“EGM to proceed—the court order does not in any way forbid it. The majority of investors are anticipated to support the CEO’s ouster, according to the source.</p>
<p>Byju urged all investors to take part in the company’s USD 200 million rights offering earlier in the day in a letter to shareholders.</p>
<p>Subsequently, he revealed that all subscribers had purchased the rights problem.</p>


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