NCLT Orders Byju's To Halt Second Rights Issue Amid Allegations Of Mismanagement

The National Company Law Tribunal (NCLT) has directed Byju's to maintain the status quo on its shareholding structure, halting its second rights issue. This interim order responds to a petition alleging oppression and mismanagement by investors including MIH EdTech Investments and General Atlantic. Byju's is restrained from proceeding with the $200 million rights issue and must keep funds from the second tranche in a separate escrow account pending further orders. The NCLT also seeks details of share allotments and escrow account transactions since January 29, 2024. Byju's faces additional challenges, including bankruptcy proceedings sought by lenders against its subsidiaries in the US.