NCLT Orders Status Quo on Byju’s Shareholding Amidst Allegations of Order Violation

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The National Company Law Tribunal (NCLT) has directed Byju’s, the popular edtech platform, to maintain the status quo on its shareholding structure, following allegations of violation of a previous order. This development comes amidst a series of controversies surrounding the company, including allegations of financial irregularities and governance issues.

The NCLT’s order stems from a petition filed by Ravi Kant, a former board member of Byju’s, who claimed that the company had illegally diluted its shareholding despite a prior order prohibiting such action. Kant, who was a key figure in Byju’s early success, alleged that the company violated the order by issuing preferential shares to existing investors, thereby changing the ownership structure without his consent.

The order from the NCLT aims to prevent further changes to Byju’s shareholding structure until a final decision is made on the matter. The tribunal has directed the company to furnish a detailed report on its shareholding structure and the steps taken in accordance with the previous order.

This development adds another layer of complexity to the ongoing troubles faced by Byju’s. The company has been grappling with a string of regulatory investigations and investor scrutiny, including allegations of accounting irregularities and misleading financial reporting.

The status quo order issued by the NCLT further intensifies the pressure on Byju’s to address the mounting concerns surrounding its governance and financial practices. This development will be closely watched by stakeholders, including investors, regulators, and the edtech industry, as it sheds light on the complexities surrounding the company’s financial operations and governance structure.