A consortium of four investors of BYJU’s has lodged an oppression and mismanagement suit against the company's management before the Bengaluru bench of the National Company Law Tribunal (NCLT).

This legal action aims to challenge the authority of the founders, including CEO Byju Raveendran, to lead the company, and advocates for the appointment of a new board.

The investors have raised concerns about alleged mismanagement and failures within what was once hailed as India’s premier tech startup. They have specifically targeted Raveendran and his family, seeking their removal from BYJU’s board due to purported mismanagement issues.

According to court documents filed on Thursday, the investors are demanding a forensic audit of the company and assert that the present management is unsuitable to steer the organisation. They propose appointing a new CEO and board to address the alleged governance lapses.

Furthermore, the investors seek to invalidate the recently concluded $200 million rights issue and prohibit the company from taking any corporate actions that might prejudice investor rights.

The petition, endorsed by investors such as Prosus, GA, Sofina, and Peak XV, with additional support from shareholders like Tiger and Owl Ventures, aims to safeguard shareholder value and uphold the interests of other stakeholders, including employees and customers.

Among the grievances outlined in the suit are concerns about financial mismanagement leading to the loss of control over Aakash, defaults in loan repayments, and prolonged governance issues such as the absence of a CFO and independent director.

The investors also criticise the handling of corporate actions, including the acquisition of Singaporean ed-tech company Northwest Education Pte., alleging non-compliance with regulations and a lack of transparency in sharing information with stakeholders.

The lawsuit highlights additional issues such as undisclosed inter-corporate loans and multiple insolvency petitions filed against BYJU’s by various entities, raising questions about the company's financial health and governance practices.