In a recent development, the National Company Law Tribunal (NCLT) has received a fresh plea filed by four investors against Byju’s, a prominent player in Bharat’s education technology sector. The investors have leveled allegations of oppression and mismanagement against the management of Byju’s. This marks the fifth legal challenge faced by Byju’s in the NCLT, with the fourth one emerging in the year 2024 alone.
The plea has been scheduled for hearing before a bench comprising judicial member K Biswal and technical member Manoj Kumar Dubey. It has been 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. The suit names Byju’s founder Byju Raveendran, his wife Divya Gokulnath, his brother Riju Raveendran, and nine other entities as respondents, according to information available on the NCLT website.
The calm facade at Byju’s was shattered on February 23 when a battle for control erupted between significant investors and the company’s founder. Rebellious investors convened an extraordinary general meeting (EGM) where, reportedly, 60% of shareholders voted to remove founder and Chief Executive Officer Byju Raveendran along with the board.
Byju Raveendran, however, has asserted to the company’s employees that he remains in control of the firm he established. He announced his intention to challenge the shareholders who have voted for his ouster. In a letter addressed to employees, Raveendran stated, “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. I am not taking any of these allegations lying down and will challenge these illegal and prejudicial actions,” as reported by Mint.
The dispute highlights the growing tensions within Byju’s, a company that has seen rapid growth and substantial investment in recent years. As the legal battle unfolds, stakeholders and industry observers will be closely monitoring the proceedings and their potential implications for one of Bharat’s leading edtech firms.
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