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Economic Times
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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 NCLT against former Byju’s directors for fraudulent transfers of company assets.
- The lawsuits aim to reverse detrimental transactions made by the company’s previous management under the Insolvency and Bankruptcy Code.
- Two sets of transactions involving millions of dollars have been contested, alleging deprivation of funds from Think and Learn.
- The former directors – Byju Raveendran, Riju Ravindran, and Divya Gokulnath – are implicated in the lawsuits.
- The RP demands that the sums be compensated to the company by the former directors.
- Riju Ravindran previously filed a petition for the RP's removal, citing EY's prior advisory role and conflicts of interest.
- Allegations have been made against EY acting in the interest of Glas Trust rather than the company.
- Another recent petition challenged Glas Trust's representation of Think and Learn's creditors, claiming lack of legal entitlement and lender support.
- A lawsuit mirrors a Delaware court ruling questioning Byju’s Alpha's transfer of a $533 million ownership interest to related entities, deemed illegal.
- The former directors have contested the Delaware court ruling and filed an appeal against it.
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