Riju Ravindran has moved the insolvency tribunal NCLT against the Compulsory Convertible Debenture agreement between Think & Learn Pvt Ltd and a wholly-owned subsidiary of Glas Trust Co, Byju’s US-based financial creditor, alleging it to be violative of FDI and FEMA regulations.
The agreement was inked to raise finance to participate in the ongoing rights issue of Aakash Educational Service Pvt Ltd (AESL) after Glas Trust failed to get a stay order from the National Company Law Appellate Tribunal (NCLAT) and the Supreme Court.
Now, Glas, holding 99.25 per cent voting rights in Think & Learn Pvt Ltd (TLPL), which owns insolvent bound edtech firm Byju’s, is attempting to raise money illegally, purportedly to participate in the right issue of AESL, Riju alleged in his interim application filed before the NCLT.
Riju, a suspended director and promoter of TLPL, said the CCD (Compulsory Convertible Debenture) is drafted to look like FDI under FEMA. Still, it is actually like an ECB ..
