ED issues Look out Circular for BYJU'S CEO

Amidst the backdrop of an impending high-stakes Extraordinary General Meeting (EGM), Byju Raveendran, the once-celebrated CEO of education-tech giant BYJU'S, finds himself under scrutiny as the Enforcement Directorate (ED) issues a Look Out Circular (LOC) against him. The issuance of this notice by the ED comes amidst BYJU'S enduring financial turmoil, marked by missed payments, insolvency petitions, and a significant plummet in valuation.

BYJU'S, headquartered in Bengaluru, has been grappling with financial challenges, highlighted by its failure to pay USD 40 million in interest to TLB creditors in June 2023, followed by a dramatic decline in valuation from USD 22 billion in 2022 to a mere USD 200 million in January 2024. Recently, foreign lenders initiated insolvency proceedings against the company, citing disputes over fund utilization and payments. Concurrently, the company's US operations faced bankruptcy after defaulting on USD 1.2 billion.

Adding to Raveendran's woes, the National Company Law Tribunal (NCLT) issued insolvency notices following a case filed by a BPO service provider. The issuance of the Look Out Circular by the ED is seen as a measure to prevent Raveendran from leaving the country.