Next steps: Embattled edtech BYJU’s investors were aware of what they were signing up for, a legal expert has said. 

Speaking to Republic Business, lawyer Rouble Chhabra said BYJU’S has the option of declaring insolvency and absolve themselve of any monetary responsibility due from its end. 

“The courts must weigh the legal recourse of this case in a manner where the decision benefits both parties, investors knew what they were signing up for and BYJU’S financials are still under scrutiny,” she noted.

Both BYJU’S and its investors have approached legal options, with the embattled edtech having an injunction from the Karnataka High Court on implementing decisions of the Extraordinary General Meeting on February 23, which the Raveendrans skipped.

The investors have also sought intervention from the National Company Law Tribunal (NCLT) seeking for the company's founder to be declared “unfit” to run the firm.

 Anything concrete can only be determined after minutely perusing the documents and agreements signed by the investors, Chhabra pointed.

This comes as BYJU’S founder and CEO Byju Raveendran refuted rumours of being ousted from the company in a letter to employees reported on February 24.

Raveendran, his wife and brother, who are the only three members on BYJU'S board did not attend the EGM called by six investors who hold over 30 per cent in the parent company of BYJU'S - Think and Learn Private Limited. This comes as the Enforcement Directorate put out a Lookout Notice against Raveendran on FEMA charges for over Rs 9,300 crore.

Among the seven resolutions including removing the current management, reconfiguration of the board and a third-party forensic investigation into acquisitions by the company, all of them were passed unanimously, according to investor Prosus. Other investors include PeakXV and General Atlantic, among others.

Other demands of the investors in the plea filed include a forensic audit, as well as directives to the management for sharing information with the investors.

Meanwhile, Raveendran has said what was decided in that meeting does not count, because it didn't stick to the established rules.