Four investors from edtech firm Byju’s have filed caveats in the Supreme Court. It has been filed with the request that they be heard before any decision is taken on a potential plea by the National Company Law Tribunal (NCLT).
On March 4, MIH Edtech Investments BV, Peak XV Partners Investments, Sofina SA, and General Atlantic Singapore TL Pte Ltd filed separate caveats.
On February 28, NCLT allowed Byju’s to go ahead with its $200 million rights issue and asked the firm to keep its proceeds in an escrow account. Keeping the rights of investors in mind, it asked the company to extend the last date.
At the NCLT, the investors said that the decision to initiate a rights issue was in violation of regulations and unlawful. Conversely, the board of directors, comprising founder Byju Raveendran, his wife and co-founder Divya Gokulnath, and his brother Riju Raveendran, argued that the investors were hindering the company’s progress.
The edtech major has also been asked by NCLT to respond to petitions involving insolvency that have been filed by the BCCI and US lenders.
Meanwhile, on February 23, shareholders of Byju’s voted unanimously to remove the CEO and founder of the company, Byju Raveendran. The case will be heard on March 13 by the Karnataka High Court, following which any decision will be taken.
Amid the ongoing situation, Byju’s has not been able to pay salaries to many of its employees. In a note to his employees, Raveendran said the company cannot pay salaries because their funds are locked.
