Park proceeds from rights issue in an escrow account: NCLT to Byju’s

The National Company Law Tribunal’s Bengaluru bench has directed Byju’s to keep funds raised from its ongoing rights issue untouched in a separate escrow account till a plea filed by a group of four investors is disposed of.

The order was made public by the NCLT on Wednesday, after hearing a petition a day earlier. It was filed by investors Prosus, General Atlantic, Sofina, and Peak XV alleging oppression and mismanagement by the edtech company.

The tribunal also urged Byju’s to consider extending the closure date of its rights issue, which was set for February 28, so that the right of petitioning investors to participate in the fund-raise is not hindered.