Four investors filed a case in NCLT against Byju CEO. Loktej Business News

Four investors filed a case in NCLT against Byju CEO.  Loktej Business News

New Delhi, 23 February (HS). The troubles of Byju Raveendran, founder and chief executive officer (CEO) of edtech company Byju’s, are increasing. Four investors of Byju’s filed a case in the National Company Law Tribunal (NCLT) alleging harassment and mismanagement. These investors have demanded that founder Byju Raveendran be declared ineligible to run the company.

Official sources said on Friday that four investors of Byju’s have filed a case of oppression and mismanagement against the company’s management before the Bengaluru bench of NCLT. In this, there has been a demand to declare the founders including Chief Executive Officer Byju Raveendran ineligible to run the company and appoint a new board of directors. Apart from this, there was also a demand to declare the rights issue invalid.

Meanwhile, the company said in a statement that Byju’s shareholders are scheduled to vote today on a proposal by some investors to oust founder CEO Byju Raveendran and his family members over alleged ‘mismanagement and failures’. However, Byju Raveendran will not attend this meeting. A day before this, the Enforcement Directorate (ED) has ‘renewed’ the lookout circular against Byju’s founder and CEO Byju Raveendran as part of its Foreign Exchange Management Act (FEMA) investigation. The effort of the central investigating agency ED is to stop them from going abroad.

Byju’s is a global ed-tech company. It also runs classes with India’s most popular online learning app. BYJU’S provides education programs for classes 1 to 12 (K-12) and competitive exams like IIT JEE and UPSC Civil Services Exam, the country’s two major exams.

It is noteworthy that the market cap of edtech firm Byju’s was once more than $ 20 billion. One of the most prominent companies in India’s start-up ecosystem, the company suffered massive losses last year, causing its market valuation to decline by nearly 90 per cent.

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This news article has been translated from the original language to English by WorldsNewsNow.com.

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