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NCLAT Denies Byju’s Equity Raise in Aakash; Upholds Shareholding Freeze

Byju’s co-founder has contested GLAS Trust’s role as a financial creditor in the ongoing insolvency process

NCLAT rejects Byju's appeal to raise equity for Aakash, freezes stake structure
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Overview

  • On June 6, the NCLAT dismissed Byju’s appeal for fresh equity funding in its subsidiary Aakash Educational Services, reinforcing an earlier NCLT order that froze any shareholding changes.
  • The appellate tribunal ruled the interim NCLT directive interlocutory and consensual, deeming it unappealable at this stage.
  • Riju Ravindran has petitioned the NCLT to remove GLAS Trust as a financial creditor, alleging it misrepresented its authority to represent term loan lenders.
  • Ravindran argues GLAS Trust holds only 17.38% of voting rights among the consortium and must prove a valid mandate before influencing the Corporate Insolvency Resolution Process.
  • Byju’s faces roughly $1.2 billion in claims from US-based lenders led by GLAS Trust while Aakash Educational Services has sought to dismiss Byju’s petition as vexatious and to include EY consultant Ajay Shah in the dispute.