The NCLT on Tuesday reserved its judgment on the plea filed by the Byju’s investors that sought orders against the edtech major. Reports say that the four investors that have moved the NCLT are Peak XV Partners, General Atlantic, Prosus and Sofina.
According to an NDTV report, the Byju’s investors have mentioned highlighted financial mismanagement by the company founders that led the edtech major to lose control of Aakash Educational Services.
The investors further said that the default on term loan B by the US unit Alpha, prolonged concerns regarding corporate governance such as the absence of a chief financial officer and independent directors, the pricing of the rights issue, regulatory non-compliances, and lack of transparency in information disclosure.
A senior official stated on Monday that the corporate affairs ministry has instructed its field officers to accelerate the examination of BYJU’S books and promptly submit their findings. This directive comes amidst ongoing challenges within the edtech company. The ministry, responsible for enforcing companies law, will determine subsequent steps upon receipt of the report from its regional office.