The injunction on the use of rights issue funds by Byju‘s will continue as the National Company Law Tribunal on Tuesday adjourned the matter to June 6 after hearing investors as well as the management.
In its order earlier this year, the NCLT, Bengaluru bench, had said the funds received by the company with respect to the rights issue should be kept in a separate escrow account and not be withdrawn till the disposal of the matter.
While investors have alleged that Byju’s has misused the funds and levelled charges against it over non-compliance with the court’s past order, the embattled edtech firm on Tuesday stated it has completely followed the NCLT directions.
The matter has now been listed for the next hearing on June 6.
Byju’s has been accused by four investors of violating the tribunal order and utilising some of the funds raised during the rights issue. The edtech company, however, firmly refuted these charges during the proceedings.
In the NCLT hearing, Byju’s counsel assured the tribunal that the company had fully complied with the court’s February 27 order.
A group of four investors — Prosus, General Atlantic, Sofina, and Peak XV — along with support from other shareholders, including Tiger and Owl Ventures, had approached the NCLT against the company management and the rights issue.