The dispute over ownership of some Aakash Educational Services Ltd shares continues to cast a cloud over settlement talks of bankrupt edtech Byju's, even as its founder Byju Raveendran expresses optimism over settlement talks.
On Wednesday, Raveendran said settlement discussions with lenders and investors were close to resolution, hours after a Singapore court sentenced him to six months in jail in a contempt case. However, according to a person aware of the matter, talks have stalled over the question of Aakash, a chunk of whose shares are under dispute.
“The talks have been underway for about five months, but they have not moved to a settlement because the status of the Aakash shareholding remains disputed,” said a second person familiar with the matter. Cleaning the Aakash cap table has to happen for any Byju's resolution to hold, the person said on the condition of anonymity.
The Aakash matter
However, Aakash is more than just a test-prep company. The brick-and-mortal coaching house is the crown jewel of what was once the Byju's group, and now coveted by multiple parties to the Byju's dispute. Glas Trust, which represents Byju’s $1.2 billion term-loan lenders, is in the picture. Qatar Investment Authority (QIA) wants its $150 million loan backed by Aakash shares back. And Manipal Group, which held about 58% in Aakash ahead of the rights issue, is also deeply tied to the outcome.
In 2022, QIA has lent $150 million to Byju’s Investments Pte. Ltd, a Singapore-based entity linked to Raveendran, against Aakash shares. QIA later alleged that those shares were shifted into Raveendran's Beeaar Investco Pte. Ltd. Beeaar subsequently emerged as a key Aakash shareholder, holding about 16% and subscribing to rights shares worth roughly ₹16 crore during Aakash’s ₹250-crore rights issue. However, regulatory filings later showed the same allotment appearing in the name of Bisy Philip, a UAE-based businesswoman, raising questions over whether Beeaar retained, transferred or routed the rights entitlement to Philip.
Later, the Aakash board put Think & Learn Pvt. Ltd’s separate ₹25-crore rights subscription on hold over foreign-exchange compliance concerns, effectively freezing that allotment. The Karnataka High Court froze a block of Aakash shares allegedly linked to Raveendran. The court’s observations intensified scrutiny on who ultimately controls the disputed shares, especially as QIA pursued enforcement of its Singapore arbitration award in India.
Valuable asset
The second person quoted above said Aakash has become central because it is one of the few remaining valuable assets linked to the broader Byju’s group. Any resolution that leaves ambiguity around who owns, controls, or can enforce against the Aakash stake risks breaking down later in court, this person said.
In essence, unless the Aakash matter is resolved, there is little chance of progress in the wider Byju's settlement talks. These talks have involved Glas Trust, QIA, Manipal and Aakash management, the two people cited earlier said.
On Wednesday, Raveendran attributed the Singapore court order to a “procedural contempt of court order” tied to document-disclosure disputes and not a finding of fraud or dishonesty. He added that appeal options were available and said the matter was being framed in a misleading way while settlement discussions with lenders and investors were nearing completion.
QIA disagreed. In a response to Mint, the fund said it was “pleased by the result of the contempt hearing in Singapore” and said the prison sentence arose from Raveendran’s “serious wrongdoing—including his violation of a global freezing order on his assets.” It added that it would continue pursuing repayment and recovery on the award in its favour, rejected the suggestion that the contempt ruling was merely a pressure tactic, and said that “no settlement appears achievable.”
A person close to Glas Trust said the lender group’s position has not changed materially. Lenders have made clear that there is no agreement with Raveendran yet, the person said on the condition of anonymity. “There is no acknowledgment that there has been no wrongdoing on Byju’s part or on the part of the other founders."
Preserving rights
As Soumya Singh, co-founding partner at Thistle & Law, said, a party moving court while settlement discussions are still on does not automatically mean the talks have collapsed. In high-value disputes such as this, litigation and negotiation often proceed in parallel, with court action used to preserve rights, prevent waiver arguments and keep enforcement pressure alive while parties continue exploring a settlement.
“Aakash is especially relevant here because it is not just another group company; it carries operating value, shareholding value and potential recovery value within the broader Byju’s structure, and can therefore become a key lever in any settlement,” Singh added.
Aakash is no longer a side story, but the central battleground in Byju’s endgame. The immediate issue is no longer simply whether Raveendran can strike peace with lenders or investors, but whether the shareholding structure around Aakash can be untangled enough for all sides to agree on who has rights over what remains one of the group’s most valuable assets. Until that happens, any claim that a broader settlement is close may remain premature.
Meanwhile, Think & Learn is itself in insolvency court. Glas Trust moved the Bengaluru bench of the National Company Law Tribunal in July 2024 after failed restructuring talks, and later came to dominate the committee of creditors with 99.41% voting share. That means the lender group has significant control over the formal resolution path at the parent company even as Raveendran continues to contest parts of the wider asset fight through parallel structures outside it.
