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Time of India
4 days ago
- Business
- Time of India
Byju's RP's suit claims directors owe compensation to company under IBC laws
An EY-backed resolution professional (RP) has filed lawsuits at the National Company Law Tribunal (NCLT) claiming former Byju's directors owe compensation to the company for fraudulent transfers of the company's assets, according to people familiar with the matter. The lawsuits invoke a provision under the Insolvency and Bankruptcy Code which provides legal recourse to reverse transactions undertaken by a company's previous management. Shailendra Ajmera, the RP of Think and Learn, which houses Byju's ed tech business and is undergoing insolvency, has claimed in the lawsuits filed in late April that two separate sets of transactions were detrimental to the company. One of them resulted in a $533 million investment held by a US subsidiary moving to related companies and the other involved a sum of Rs 130 crore moving from Think and Learn to its subsidiary in India, said the people. Think and Learn was, therefore, deprived of these funds, it is claimed. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Elegant New Scooters For Seniors In 2024: The Prices May Surprise You Mobility Scooter | Search Ads Learn More Undo The lawsuits implicate the company's three former directors – Byju Raveendran , Riju Ravindran and Divya Gokulnath . Ajmera has demanded that the sums be made good to the company by the former directors. ETtech Live Events Riju Ravindran had in early April filed a petition with the NCLT claiming Ajmera should be removed as the RP of Think and Learn because EY has been an adviser to the company prior to its admission into insolvency proceedings, raising the issue of conflict of interest. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Further, he claimed that EY was perpetuating a fraud and acting in the interest of Glas Trust, which claims to be representing the majority of Think and Learns creditors, and not in the interest of the company. In a recent petition filed with the NCLT, Riju Ravindran claimed that Glas Trust, which is the lenders' agent that forms 99% of the committee of creditors of Think and Learn, is not legally entitled to represent the lenders. He claimed that Glas Trust didn't have the support of 50% of the lenders as required in the borrowing agreements entered between Think and Learn and its lenders. He also claimed that it had no authority to instruct Ajmera or undertake any acts towards the company's insolvency. Ajmera, his lawyers Chandhiok and Mahajan, Byju Raveendran and Riju Ravindran did not respond to ET's queries. One of Ajmera's two lawsuits follows a recent Delaware court ruling in the US where Byju's Alpha's move to transfer a $533 million ownership interest in a set of funds called Camshaft Funds to related entities was under question. Byju's Alpha is a US subsidiary of Think and Learn. The Delaware court termed the transfers illegal and demanded their reversal. The former directors have appealed the ruling.
Time of India
06-06-2025
- Business
- Time of India
NCLAT rejects EY partner's plea in Byju's-Aakash case
Bengaluru: The National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Shailendra Ajmera, resolution professional for Think & Learn (Byju's) and a partner at Ernst & Young (EY), in the ongoing dispute over Aakash Educational Services (AESL). Ajmera challenged an April 30 order by the NCLT Bengaluru that directed all parties to maintain the status quo on Byju's 25% stake in AESL. The NCLAT held that the order was interim and passed with the consent of all parties, making it ineligible for appeal. The tribunal's bench, comprising Justice Sharad Kumar Sharma and technical member Jatindranath Swain, sided with arguments presented by senior counsels for AESL and the Manipal Group, which is the largest shareholder in AESL. They said Ajmera's appeal was not legally maintainable and that the underlying company petition under Sections 241–242 of the Companies Act was itself questionable given the ongoing insolvency proceedings. The appellate bench also noted that the April 30 order stemmed from a prior arrangement recorded by the Karnataka High Court on April 8, following the quashing of an earlier NCLT order that was passed without hearing all stakeholders. The matter will now return to the NCLT Bengaluru for a full hearing. Among the issues to be decided are whether the interim arrangement should continue, whether EY should be made a party to the proceedings due to its advisory role to multiple stakeholders, and whether Ajmera's petition is maintainable. The dispute follows a series of transactions that led to the Manipal Group acquiring a controlling stake in AESL. Byju's acquired AESL in 2021 in a deal valued at around $1 billion. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
Time of India
03-06-2025
- Business
- Time of India
Aakash moves NCLT to implead EY, alleges conflict in Byju's petition
BENGALURU: Aakash Educational Services Ltd (AESL) has filed an application before the National Company Law Tribunal (NCLT), Bengaluru, seeking to dismiss a petition filed by Byju's and calling for the impleadment of consultancy firm Ernst & Young (EY) and its partner Ajay Shah. AESL has alleged a conflict of interest, citing EY's past advisory roles in transactions now being challenged by the Resolution Professional (RP) of Think & Learn Pvt Ltd, Byju's parent entity. In its June 1 application, AESL claimed that EY and Shah had played a central role in financial, legal, and compliance-related matters for the company, including the structuring of non-convertible debentures (NCDs), their conversion to equity, and other board-level decisions. The same transactions are now under challenge by the RP, Shailendra Ajmera, who AESL alleges is also affiliated with EY. 'The RP has suppressed material facts and is acting in excess of his statutory powers under the Insolvency and Bankruptcy Code,' AESL said in its filing. It further alleged that Ajmera's position as RP is 'severely compromised' due to EY's historical involvement with multiple parties in the dispute, including AESL, Byju's, and Davidson Kempner. The impleadment plea includes internal communications between AESL and Shah, such as cash flow discussions, equity restructuring guidance, and audit-related representations. AESL claimed that Ajmera failed to disclose these associations and filed the petition without requisite approvals from Byju's Committee of Creditors or the NCLT. The filing comes days after Ajmera, in a letter dated May 28, wrote to the AESL board questioning the status and independence of its directors, particularly those aligned with Manipal Group, which acquired a significant stake in AESL last year through a debt-to-equity transaction. AESL has also stated it may escalate the matter to regulatory bodies including the Ministry of Corporate Affairs and the Insolvency and Bankruptcy Board of India. The tribunal is yet to decide on the maintainability of Byju's original petition. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hindustan Times
27-05-2025
- Politics
- Hindustan Times
Are you an international student in the US? These violations can cost you your visa immediately
On Tuesday, May 27, the US Embassy in India warned Indian or foreign students that if they are found skipping classes or dropping out of their courses, they might end up losing their student visas. 'If you drop out, skip classes, or leave your program of study without informing your school, your student visa may be revoked, and you may lose eligibility for future U.S. visas. Always adhere to the terms of your visa and maintain your student status to avoid any issues,' the official statement, shared on X, read. International students in the United States have been uncertain and anxious ever since US Immigration and Customs Enforcement (ICE) officials revoked the visa status of thousands of students recorded in the Student and Exchange Visitor Information System (SEVIS). At the peak of the revocation activity, almost 5,000 student records were affected, an ICEF Monitor report revealed. However, ICE went on to reverse its decision in late April after facing various legal challenges from students, universities and education bodies. ICE also restored the visa status of those who were impacted. However, US authorities have continued to use their legal powers to cancel student visa status and carry out deportations. Earlier, hundreds of international studentsstudying in the US received emails from the US Department of State (DOS), asking them to self-deport as their F-1 visas (student visas) had been revoked because of campus activism. Students who shared or liked 'anti-national' posts were also targeted. Amid the uncertainty faced by international students,Prashant Ajmera, immigration lawyer at Ajmera Law Group, explained that some immigration violations, which 'occur when a student breaches the terms of their visa,' can land them in trouble, according to Business Standard. These violations include: 'These violations can lead to termination of the SEVIS record, deportation, bans of three or ten years from returning to the US, and serious difficulties obtaining future visas,' Ajmera said. Ajmera also explained that some criminal violations involve breaking the US laws, and can even overlap with immigration violations. 'Underage drinking, drink driving, credit card fraud, shoplifting, or possession of prohibited items can all trigger criminal proceedings, visa revocation and removal from the US,' said Ajmera, adding that the US maintains interconnected databases that enforcement agencies can access, which lets them cross-check student data. Mamta Shekhawat, founder of said that it is a 'misconception that only crimes lead to visa revocation.' 'Students can lose visas for non-criminal issues such as not maintaining student status, breaching visa terms, providing false information or even questionable social media activity. We've seen cases where incomplete forms or small documentation errors caused delays, rejections and cancellations,' Shekhawat added. Kajal Dave, co-founder of LaunchEd, said, 'Minor documentation lapses that are corrected promptly won't usually lead to visa loss. Repeated or serious discrepancies, however, draw attention. Students must keep records updated and act fast if issues arise.' Peeyush Agarwal, co-founder and CEO of Invest4Edu, said that students often face trouble with their visa because of unauthorized work. 'Many students mistakenly take freelance or part-time work off-campus without approval from their Designated School Official or US Citizenship and Immigration Services. Failing to maintain a full course load or not informing the university about changes of address or school can also trigger loss of status,' he explained. 'The biggest issue is often not wilful wrongdoing but simply a lack of awareness,' added Agarwal. 'Students should speak regularly with their international student office and never assume something is allowed under their visa.' Ajmera advised students to remain calm if they face such problems in the US and are contacted by US authorities. 'Never resist or run from police, as that turns a small problem into a criminal offence. Ask for legal representation immediately,' he said.
Time of India
24-05-2025
- Business
- Time of India
Byju's app taken down from Google Play Store; payment disruption for services cited
Troubled edtech firm Byju's app has been taken down from the Google Play Store due to disruptions in payments for its services, according to sources familiar with the matter. However, other apps from the edtech company — including Byju's Exam Prep, which supports students preparing for competitive exams like Indian Administrative Service (IAS), Master of Business Administration (MBA), and University Grants Commission National Eligibility Test (UGC NET), and the Think and Learn Premium app — remain available on the platform. While Byju's website is still operational, several of its key services are facing technical issues. Features such as booking free sessions for students in classes four to nine and the Byju's Early Learn programme, designed for learners up to grade three, are currently showing server errors. Coaching operator Aakash Institute , a subsidiary of Byju's parent company Think & Learn, continues to operate as usual. Byju's and its resolution professional (RP), Shailendra Ajmera, did not respond to ET's request for comment. The company is currently managed by Ajmera, who took over as the new RP in February. Live Events The app and website-related disruption was first reported by Moneycontrol. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories The edtech firm, which was once valued at $22 billion, is currently in the midst of insolvency proceedings that began last year after the Board of Control for Cricket in India (BCCI) moved the NCLT to recover Rs 158 crore that the company owed it for a sponsorship deal. Founder Byju Raveendran , who has been actively sharing his views on the company's situation and its ongoing legal battles through social media, recently outlined the next phase of Byju's 3.0. This new phase focuses on moving away from profit-centric strategies toward a more purpose-driven approach. He stressed that the focus would be on improving learning outcomes, particularly for students in the bottom quartile. Raveendran also admitted that taking the $1.2 billion term loan in 2021 was a mistake, particularly given the availability of equity options at the time. Currently, Glas Trust, which represents the US lenders who lent the $1.2 billion to Byju's, is pursuing a legal case against the edtech company in the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT). Glas Trust is also a part of the committee of creditors at Think & Learn.
