 "Byju Raveendran, Byju's founder")
Edtech firm Think and Learn, which owns Byju's brand, has been asked by an emergency arbitrator not to sell around 6 per cent stake in its subsidiary Aakash Education Services Limited as it has failed to pay back around Rs 350 crore raised from billionaire doctor Ranjan Pai-led MEMG Family Office.
Arbitration proceedings were initiated by the MEMG Family Office in March to protect its rights, as per the undertaking given by Byju's at the time of securing the loan.
"The emergency arbitrator has asked Byju's not to transfer or create any rights on around six per cent stake in Aakash as per the undertaking given by the company at the time of raising around Rs 350 crore loan from MEMG Family Office," a legal representative aware of the development on condition of anonymity said.
The representative said that the directions were issued on April 4 by an emergency arbitrator, appointed under Singapore International Arbitration Centre rules, in India.
An email query sent to Byju's and MEMG elicited no reply.
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However, a source at Byju's said that the arbitration order largely preserves the status quo and is by no means detrimental to the value of either AESL or Think and Learn.
"The arbitration process by MEMG is procedural in nature, and the team at Byju's is in talks to resolve it keeping the companies' best interests in mind," the source said.
Troubled edtech firm Byju's has been facing a liquidity crunch post-pandemic and has been struggling to pay the salaries of employees.
