Aakash puts BYJU’S Rs 25-crore allotment on hold over FEMA, ECB red flags

CHENNAI: The board of directors of Aakash Educational Services Limited (AESL) has put Think & Learn Pvt Ltd (TLPL)’s share allotment of Rs 25 crore, alleging that the amount by the BYJU’s parent company does not comply with Foreign Exchange Management Act (FEMA) rules, the Companies Act or the External Commercial Borrowings (ECB) guidelines, the AESL said on Friday.

Concluding the Rs 100-crore rights issue, the board of AESL has approved the allotment of shares to the Manipal Group and Beeaar Investco Pte. Ltd, which contributed Rs 58 crore and Rs 16 crore, proportionate to their shareholding of 58.8 percent and 16 percent, respectively. TLPL, the parent company of BYJU’S, is currently undergoing corporate insolvency resolution process (CIRP).