NCLT Freezes Aakash Shares Amid Byju’s Dispute
• Aakash vs. Byju’s: Legal Battle Intensifies
• Byju’s Faces Setback in Aakash Institute Case
Unmesh Gujarathi
Sprouts News Exclusive
In a significant development, the National Company Law Tribunal (NCLT) has ordered a status quo on the shareholding of Aakash Education Services Limited (Aakash Institute). The directive comes in response to a plea filed by the Resolution Professional (RP) of Byju’s (Think and Learn Private Limited), intensifying the ongoing legal battle surrounding the educational giant.
A coram comprising Judicial Member Sunil Kumar and Technical Member Radhakrishna Sreepada ruled,
“At this preliminary stage, as a measure of fair assessment, to balance the interest of the parties and to avoid the issues between the parties to further complicate, the Respondents are directed to maintain status quo in respect of their shareholding of the Respondent No.1 Company as on date, till the next date of hearing.”
The matter is now scheduled for the next hearing on April 30, 2025.
• Sprouts News Insight: The Aakash-Byju’s Conflict
Aakash Institute has been embroiled in a legal tussle over an attempted amendment to its Articles of Association (AoA). The amendment was opposed by Blackstone-backed Singapore Topco, a shareholder in Aakash, on the grounds that it could significantly dilute its 6.8% stake.
The dispute traces back to Aakash’s merger with Byju’s, through which Topco acquired its shares. Adding to the tension, Glas Trust, a lender to Byju’s, also raised objections, stating that the proposed amendment was an attempt by the former management of Byju’s to dilute its valuable stake in Aakash.
Aakash, on the other hand, defended the amendment, arguing that it was essential for securing crucial funding. Meanwhile, Manipal Systems emerged as the largest stakeholder in Aakash, further shifting the power dynamics.
• Judicial Interventions & Supreme Court Order
Earlier, the NCLT had restrained Aakash from implementing the amendment, but the Karnataka High Court later stayed this order, allowing Aakash to proceed. This led Singapore Topco to challenge the High Court’s authority in the Supreme Court, which ultimately directed Aakash to halt the implementation and instead approach the National Company Law Appellate Tribunal (NCLAT).
The NCLAT declined to modify the stay order and advised Aakash and Manipal Systems to file an application before the NCLT instead. Consequently, Aakash petitioned the NCLT to vacate the stay, but Singapore Topco withdrew its objection just before the Tribunal could issue a ruling.
Currently, multiple appeals related to the case are pending before the NCLAT Chennai.
• Byju’s Seeks Relief
Appearing on behalf of Byju’s, Senior Advocate Ravi Kadam argued for urgent interim relief, claiming that Byju’s rights under the Merger Framework Agreement and Fallback Agreement were being violated.
He highlighted that Byju’s had invested ₹2,000 crore in Aakash and was protected by an NCLT order issued on November 20, 2024, following a petition by Blackstone (Singapore Topco). However, when Blackstone withdrew its petition on February 24, 2025, Byju’s was left vulnerable.
Kadam further alleged that Blackstone Group had sold its stake in Aakash to an entity of the Manipal Group, violating the Merger Framework Agreement.
Meanwhile, counsel for the respondents opposed Byju’s plea, arguing that the Resolution Professional (RP) was not a party to the earlier proceedings and that ground realities had since changed. They contended that granting interim relief would effectively restore the previous status quo without due process.
Seeking time to file a response, the respondents urged the NCLT to give them a fair opportunity to present their case.
Initially, the Tribunal adjourned the matter before the lunch break, but later in the day, it issued the status quo order.
Senior Advocate CK Nandakumar, representing Aakash, expressed surprise at the order, stating that he believed the matter was being adjourned. However, the coram informed him that they had already signed the order, closing the discussion for now.
Also read: Supreme Court Targets Fake Medical Ads, States Must Act.
• Controversies & Allegations Against Aakash
Apart from the ongoing legal battle with Byju’s, Aakash Institute has faced multiple controversies over the years. Several allegations have been made against the institution regarding unfair business practices, misleading advertisements, and exorbitant fee structures. Critics have accused Aakash of using aggressive marketing strategies to attract students while failing to deliver on promised results. In recent years, concerns have also been raised about the institute’s refund policies, with parents and students claiming they were denied reimbursements despite meeting eligibility criteria.
Additionally, there have been allegations that Aakash has engaged in faculty poaching from rival coaching institutes and has pressured students into long-term courses under false pretenses. Some reports suggest that the institute has been involved in data privacy concerns, where student information was allegedly shared with third-party entities for marketing purposes. As these issues continue to surface, stakeholders and regulatory authorities are closely monitoring the institute’s practices.
As this high-stakes battle unfolds, Sprouts News will continue to track developments, ensuring our readers stay informed on this crucial legal showdown between Byju’s, Aakash Institute, and their key stakeholders.