Byju's Faces Fifth NCLT Plea as Investors Accuse Mismanagement and Oppression

27 Feb 2024 , 10:37 AM

Four investors filed a claim of mismanagement and oppression against the edtech company Byju’s on February 27, and the National Company Law Tribunal (NCLT) has listed the claim.

A bench consisting of technical member Manoj Kumar Dubey and judicial member K. Biswal will hear the plea. This is the fifth NCLT plea against Byju’s, with the fourth having been submitted in 2024.

MIH Edtech Investments B.V., Peak XV Partners Investments IV, Peak XV Partners Investments V, Sofina S.A., and General Atlantic Singapore TL Pte. Ltd. are the four investors who moved NCLT against Byju’s. Investors have filed a plea against 12 businesses and individuals, including Byju Ravindran, the founder of the company, Divya Gokulnath, his wife, and his brother Riju Raveendran, according to the NCLT website.

According to news reports, the investors asked the NCLT to declare the founders unsuitable to lead the business, name a new board, declare the rights issue null and void, and carry out a forensic examination, among other reliefs. The appeal was moved about the same time as an Extraordinary General Meeting (EGM) was convened by a different group of investors. 

Investors such as Prosus, General Atlantic, and Peak XV voted to terminate Raveendran at the February 23 EGM. Moneycontrol was informed by investor sources that Byju’s shareholders held approximately 60% of the firm’s shares at the time of the resolutions’ vote. However, company sources countered that the resolutions’ supporters only owned roughly 47% of the business’s shares.

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