Byju Investor Showdown: EGM drama and controversy

However, Byju did not accept this development. The company vehemently contested the legality of the EGM and argued that procedural irregularities and legal violations led to the cancellation of the meeting. This controversy was recently strengthened by an order of the Karnataka High Court, which postponed any proposal pending further judicial review.

At the center of the controversy are allegations of financial mismanagement, particularly related to Aakash’s loss of control, and default on Byju’s Alpha (TLB loan) leveled by influential investors including Prosus, GA, Sofina and Peak XV. Raveendran and his family, who collectively hold a significant stake in the company, chose to stay away from the EGM and dismissed it as “procedurally invalid”.

Ahead of the EGM, a group of investors escalated the conflict by filing a harassment and mismanagement suit against Byju’s management with the National Company Law Tribunal (NCLT), seeking a radical change in the leadership structure, recent rights issues, And demanded forensics. Audit of company accounts.

The fallout from the EGM extends beyond the boardroom, with stakeholders closely monitoring developments that could potentially impact the company’s trajectory. The result of the vote is in limbo, pending verification at the next court hearing on March 13. As the impasse continues, Byju’s future hangs in the balance, with ramifications that can be seen across India’s edtech landscape and beyond.