Key investors in Byju's alleged on Tuesday that the Enforcement Directorate (ED) is investigating diversion of funds of over $500 million by the edtech company to a hedge fund in the US.
In the ongoing hearing at the National Company Law Tribunal (NCLT) in Bengaluru, the investors alleged that the address of the hedge fund was a "pancake shop" and its founder "is a 23-year-old without any training".
"About $533 million has been siphoned off. He (Byju Raveendran) wants us to invest more money. How will we be protected?"
Byju’s key investors -- Prosus, General Atlantic, Sofina and Peak XV -- have moved the tribunal against the embattled edtech major over its $200 million rights issue.
During the hearing, the investors claimed that "if the amount is parked in their bank account especially when the man is sitting abroad and is not coming to India, it will become irreversible".
Earlier in the day, the investors argued that the process adopted by Byju’s for its $200 million rights issue is "in breach of laws".
They said that the board of directors had to call an Extraordinary General Meeting (EGM) of shareholders before the rights issue so that they could vote.
"The board of directors did not call a general body meeting before rights issues as they are aware that the general body is not in their favour," argued the lawyer on investors' behalf.
"Our 25.4 per cent stake will come down to 2.5 per cent if we don't subscribe to the rights issue. If we subscribe, we don't know what happens to our money," the investors said.
Byju’s argued that the investors were “forum shopping” by approaching the NCLT.
"If the NCLT passes any order today, it will dilute the order of Karnataka HC," the company's lawyer said.
"The investors are not looking at the interest of 100 million students and the 12,000 employees but only at their value maximisation."
"It has been 21 months since our last capital raise," the company added.
Credit card data of 17K ICICI Bank users exposed; bank blocks cards, assures compensation
After credit card data of at least 17,000 new ICICI Bank customers was exposed and reached "wrong users", the bank said on Thursday that it has blocked these cards and is issuing new ones to the customers.
NDA rule has shown superior numbers on GDP growth, inflation, unemployment compared to UPA
The NDA rule of the last 10 years has shown superior numbers on GDP growth, inflation, CAD (Current Account Deficits), unemployment and FDI ex of pandemic year compared to the UPA regime, broking firm Prabhudas Lilladher said.
RBI crackdown triggers crash in Kotak Bank shares
The RBI had, on Wednesday evening, barred Kotak Mahindra Bank, with immediate effect, from taking on new customers and issuing fresh credit cards.
Kotak Bank promoter donated electoral bonds worth Rs 60 cr, but RBI cracks down on lender to protect customers
Infina Finance, one of the promoter group entities of Kotak Mahindra Bank which was barred by the RBI on Wednesday from onboarding new customers, had donated electoral bonds worth Rs 60 crore to the BJP.
RBI lists 6 factors powering India’s take-off to become world’s 3rd largest economy
While India’s recent growth performance has surprised many, triggering a flurry of upgrades from financial institutions such as the IMF, the RBI bulletin released on Tuesday cites six factors that will propel the country to become the world’s third-largest economy.
Sensex gains more than 300 points
BSE Sensex gained more than 300 points on Monday as geopolitical tensions eased and crude oil prices declined.
Direct tax collections shoot past budget target by Rs 1.35 lakh cr in 2023-24
The net direct tax collections, comprising corporate tax and personal income tax shot up to Rs 19.58 lakh crore in 2023-24, compared to Rs 16.64 lakh crore in the preceding financial year, representing a double-digit increase of 17.7 per cent.
Elon Musk confirms not coming to India amid crucial Tesla quarter results
Elon Musk, on Saturday, confirmed that he will not visit India this month amid crucial Tesla quarterly results and will possibly visit the country later this year to announce his investment plans.