Byju’s Facing Fifth Legal Challenge in NCLT, Fourth in 2024 Alone, Amid Mounting Woes.
In the latest development concerning Byju’s, the National Company Law Tribunal (NCLT) has officially recorded a fresh plea submitted by four investors directed at the Indian Edtech giant. As reported by Moneycontrol, these investors have leveled allegations of oppression and mismanagement against Byju’s management. This legal action signifies the fifth challenge lodged against Byju’s within the NCLT’s jurisdiction, marking the fourth such occurrence in the year 2024 alone.
The plea, listed for hearing before a bench of judicial member K Biswal and technical member Manoj Kumar Dubey, was filed by a group of investors, including MIH Edtech Investments B.V, Peak XV Partners Investments IV & V, Sofina S A, and General Atlantic Singapore TL Pte. Ltd. As per the NCLT website, the suit names Byju’s founder Byju Raveendran, his wife Divya Gokulnath, his brother Riju Raveendran, and nine other entities as respondents, the report further added.
The semblance of tranquility surrounding Byju’s shattered on February 23 as a contentious struggle for control of the Edtech company erupted between influential investors and its founder. In a bold move, dissenting investors convened an extraordinary general meeting (EGM), during which an overwhelming 60% of shareholders purportedly ousted founder and Chief Executive Officer Byju Raveendran, alongside the entire board.
Byju Raveendran, Chief Executive Officer of Byju’s, however, claimed to employees that he retains control of the company he founded and that he plans to challenge shareholders who have voted to oust him, as reported by Mint.
Contrary to what you may have read in the media, I continue to remain CEO, the management remains unchanged, and the board remains the same,” Raveendran said in a letter to employees on Saturday. “I am not taking any of these allegations lying down and will challenge these illegal and prejudicial actions.