Today’s Extraordinary General Meeting of Byju: Voting Possible to Remove Raveendran and Family from Board

Byju’s, one of India’s leading edtech companies, is witnessing an extraordinary general meeting (EGM) today. According to reports, at this meeting, stakeholders may vote to remove Byju’s founder and CEO, Raveendran Byju, and his family from the company’s board.

Raveendran and his family hold approximately 26% of the company’s shares. Sources suggest that stakeholders may seek their removal from the board due to alleged mismanagement and failure. Shareholders who have called for the EGM collectively hold more than 30% of the shares. Raveendran and his family hold approximately 26% of the company’s shares.

The EGM notice indicated that there might be changes to the composition of the company’s current board. Sources indicate that the stakeholders behind the EGM are discussing the removal of Raveendran, his wife, his brother Riju Raveendran, and co-founder Divya Gokulnath from the board.

Shareholders have also cited reasons for demanding the removal of the Byju family in the notice. Allegations include financial irregularities, failure of management, manipulation of legal rights of the company, depreciation in value, and concealing information.

ED Seeks Answers from Byju Amid Lookout Circular Demand

Recently, the Enforcement Directorate (ED) has issued a lookout notice against Byju’s founder and CEO, Raveendran Byju. This is to ensure that Byju does not leave the country. Economic Times has reported this information in one of its articles.

ED Investigates Byju under Foreign Exchange Management Act

The Enforcement Directorate (ED) is also investigating Byju under the Foreign Exchange Management Act (FEMA). Three months ago, the Enforcement Directorate had also issued a notice to Byju and Think and Learn Private Limited for transactions worth ₹9,000 crores.

According to the ED, Byju has violated FEMA by conducting transactions outside India. This is a violation of the provisions of FEMA 1999. As a result, the Indian government has suffered losses due to the violation of the provisions of 1999.

Byju’s Losses Increase to ₹8,245 Crores

In the financial year 2022, Byju’s incurred losses of ₹8,245 crores. In the financial year 2021, the loss was ₹4,564 crores. This means that the company’s losses have almost doubled. During this period, the company’s total revenue was ₹5,298 crores. In 2021, the revenue was ₹2,428 crores. This indicates a 118% increase in revenue.

Byju Faces Major Issues Amidst Troubled Times

The Board of Control for Cricket in India (BCCI) has initiated disciplinary proceedings against Byju. Byju is accused of defaulting on a payment of ₹158 crores.

The ED has issued notices in cases of FEMA violations amounting to more than ₹9,000 crores. FEMA was enacted in 1999 to regulate foreign exchange flows. Employees of the Gurugram office were laid off for not paying rent. Their laptops were confiscated.