What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
NEW DELHI/BENGALURU: India’s embattled ed-tech company Byju’s is facing an uphill battle for survival after 10 major investors, that make up nearly 60 % of investment, on Friday passed a resolution to eject out the founder and CEO Byju Raveendran while also announcing to approach National Company Law Tribunal (NCLT) against him for being unfit to run the company.
The move comes barely 24 hours after Enforcement Directorate (ED) has issued a look out circular (LoC) amid fears that Raveendran may escape out of India as his company faces accusations of money laundering and fraud by several students and families.
Investors which want Raveendran out include: Peak XV Partners (formerly Sequoia Capital India & SEA), General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina, and T. Rowe Price Associates. These shareholders have about 60% stake in Byju’s.
Sources at Byjus confirmed that though Raveendran was not present at the Emergency General Meeting (EGM) that took place on Friday over a video concall but he had asked his confidante to keep him on a muted phone call on Facetime Audio, to listen into the investors sentiments against him.
“We will be approaching NCLT against Raveendran for mismanagement, cruelty and embezzling funds of investors. He’s fooling around with investigation agencies, government tax agencies and us,” said an investor’s representative.
Amid the indications by a fast-coming ED probe against him, Raveendran has approached Karnataka High Court, through his parent company Think & Learn Private Limited to declare any resolutions proposed on Friday meeting as invalid.
“We know that Raveendran, his wife , Divya Gokulnath, and his brother Riju Ravindran were not part of the EGM but they eavesdropped into all accusations that were levelled against him. Even ED, students and faculty are worried that this man may run away from the country under any pretext. Which is why a notice has been slapped against him at all airports,” said a shareholder’s representative.
Another shareholder said they already have more than 51 % of the required quorum and voting power to remove Raveendran keeping in the Articles of Association (AOA) and SHA intact, according to Companies Act, 2013.
According to the petition, which The New Indian has seen, Raveendran and this company Think & Learn Private Limited, have argued that the cash-starved firm is looking for investment worth $200 million (Rs 1,658 crore) via rights issue even as ED has accused Raveendran of violations involving intitial investment of more than Rs 9,362 crore. Raveendran and his family have barely 27 % stake in the company amid ED inquiries.
“Any movement for Raveendran has been alerted at all airports with his Aadhar ID, PAN ID, Voter ID and passport number. His entry and exits at all domestic and international airports will be under our radar,” said a senior official at Foreigners Registration Office (FRRO).
BCAS has been tasked to provide relevant security to whisk him in case of any suspicious activity at any airport by him or his family members, said top officials at ED.
