Riju Ravindran moves NCLT, alleges GLAS Trust has no authorisation to represent its US-based lenders
Riju Ravindran, cofounder and former promoter of Think and Learn, which owns debt-ridden edtech firm Byju's, has moved insolvency tribunal NCLT for removal of GLAS Trust as the financial creditor and from its Committee of Creditors.
In his petition, Ravindran has alleged that GLAS Trust has "fraudulently represented itself to be a financial creditor" and has requested the National Company Law Tribunal to direct it to "prove its authority to represent the creditors before it".
GLAS Trust, which is representing Byju's US-based creditor, has the authority to represent merely 17.38% of the voting rights of the consortium of term loan providers, he submitted.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Perdagangkan CFD Emas dengan Broker Tepercaya
IC Markets
Mendaftar
Undo
According to Ravindran, GLAS can take actions on behalf of lenders only if the action is authorised by lenders holding more than 50% of the term loan.
GLAS Trust Company LLC, a US-based firm, is the trustee for lenders to which Byju's owes $1.2 billion.
Live Events
He has requested NCLT to "direct removal of GLAS Trust Company LLC from CoC of Think and Learn forthwith and to, consequently, set aside and declare all decisions taken by the CoC...with GLAS Trust Company LLC, as a member, as nullity."
Discover the stories of your interest
Blockchain
5 Stories
Cyber-safety
7 Stories
Fintech
9 Stories
E-comm
9 Stories
ML
8 Stories
Edtech
6 Stories
The matter is scheduled for hearing before the Bengaluru bench of NCLT on Friday.
As an interim measure, Ravindran has also directed NCLT to "stay CIRP of Think and Learn, till the time GLAS proves it has the requisite authority of the qualified lenders under the
Credit and Guaranty Agreement
dated 24.11.2021 for taking any action under the said agreement."
Ravindran has filed this application in the main petition filed by the cricket body BCCI, on whose plea
Corporate Insolvency Resolution Process
(CIRP) was initiated against the edtech firm.
He further alleged that GLAS has "fraudulently represented" itself to be a financial creditor before NCLT and obtained several orders based on it.
"This fundamental fraud has been perpetrated upon this tribunal by GLAS by illegally claiming that it has the authority to represent lenders under the Credit and Guaranty Agreement dated 24.11.2021 without possessing the requisite mandate from 51% of qualified lenders," it said.
GLAS' entire edifice of representation crumbles upon examination of the contractual disqualification mechanism that has been validly exercised by the company, resulting in the disqualification of 61.43% of the term loan holders.
"This disqualification has reduced GLAS' actual authority to represent merely 17.38% of the term loan, rendering every action taken by GLAS in these proceedings as ultra vires and void ab initio," it said.
He further alleged GLAS, fully cognizant of its lack of authority, has 'orchestrated' an elaborate conspiracy involving Ernst & Young (EY) and successive Resolution Professionals to manipulate the CIRP process and perpetuate its illegal control over it.
Byju's Alpha Inc, a wholly-owned US subsidiary of Think and Learn, had availed a loan facility amounting to approximately $1.2 billion under a Credit and Guaranty Agreement on November 24, 2021 from a group of lenders. The agreement was for a period of five years with a maturity dated in November 2026 for the term loan under the same.
However, GLAS issued a notice of default and sought to accelerate the term loan on March 2023 within 15 months of the Credit Agreement and 3.5 years prior to the maturity date.
Upon realising that certain lenders had stepped into the shoes of the initial investors in violation of the specific terms of the Credit Agreement, Think and Learn exercised its rights under the agreement to protect itself by issuing letter of disqualification on June 5, 2023, to Redwood entities.
According to the petition, GLAS claims to be the administrative and collateral agent for the lenders under the Credit Agreement.
GLAS Trust, which had also filed insolvency plea, claimed that 72.2% of the lenders consented to filing of the same.
"It is submitted that out of these 72.20%, 61.43% are disqualified lenders. Therefore, from the lenders who consented (or voted "yes"), only about 10.77% are not disqualified lenders. The percentage of disqualified lenders who consented in proportion to non-disqualified lenders is 6.61%. This would, perforce, mean that GLAS has the authority to represent only 17.38% of the term loan," he said. PTI
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
an hour ago
- Hindustan Times
RBI's 50 bps repo rate cut bonanza: Here's how it will impact homebuyers' EMIs
Although the festive season is still months away, RBI's 50 bps rate cut is welcome news for prospective homebuyers, as it will help lower overall borrowing costs. For existing homebuyers, the RBI's rate cut means they can now opt for a higher loan amount without increasing their EMI. The central bank has also adopted a neutral stance, signaling that it is unlikely to either cut or hike rates aggressively in the near term. This suggests that further rate cuts are not expected anytime soon, making it an opportune moment to buy a home—especially for those who are ready and need one. However, experts caution that undecided buyers should not base their homebuying decisions solely on lower interest rates. Other financial and personal factors must also be considered. Also, the actual benefit, however, hinges on how quickly banks pass on the cut by reducing their Marginal Cost of Funds-based Lending Rates (MCLR). 'With the RBI announcing a third rate cut this calendar year, bringing the total repo rate reduction to 100 basis points (bps), we're seeing a gradual but positive shift for borrowers. Although each cut, including the recent 50 bps reduction, may seem modest in isolation, cumulatively they help ease the overall cost of borrowing,' says Deepak Kumar Jain, founder and CEO of a loan distribution company. For instance, on a ₹50 lakh home loan over 20 years, the EMI drops by around ₹3,164. For loans of ₹1 crore and ₹1.5 crore, the monthly savings are approximately ₹6,329 and ₹9,493, respectively. While these savings aren't massive, they do improve affordability, especially in a high-cost housing market. The rate cuts since the beginning of the year also mean that borrowers can now opt for a higher loan amount while keeping their EMI unchanged. With the RBI having reduced the repo rate by 100 bps so far this year, home loan rates are expected to fall further as banks begin to transmit the benefits of the monetary policy. 'This means if someone is paying a 9% interest rate for a ₹1 crore home loan and the interest rate comes down to 8%, then by keeping the EMI constant, they can opt for a higher loan amount by almost ₹7.5 lakhs,' says Abhishek Kumar, founder and chief investment advisor of SahajMoney, a financial planning firm. The actual transmission to the end borrowers would depend on how quickly the banks pass on the benefits through lower Marginal Cost of Funds-based Lending Rate (MCLR) rates. Thanks to the 100 bps rate cut this year, including a fresh 50 bps slash, Priya, a young IT professional in Pune, sees her ₹50 lakh home loan EMI reduced by over ₹3,000. That saving bridges the gap between rent and ownership, letting her seriously plan her move from tenant to homeowner. The RBI has also cut the Cash Reserve Ratio (CRR) by 100 bps. This does not have a direct impact on home loan interest rates but there is an indirect impact. 'The reduction in the Cash Reserve Ratio (CRR) will help boost liquidity in the banking system, which means that banks have more funds to lend. Developers will be able to access more capital for their projects, and this can positively impact project completion timelines. It also gives banks the option to reduce home loan interest rates, which will have again positively impact sentiment in the affordable and mid-income segments,' says Anuj Puri, chairman, Anarock Group. 'With this RBI rate cut, the EMIs will come down by almost 10-12%. For example, if a person wants to continue with the same tenure the EMIs will be lesser, however if someone opts for a shorter tenure, the EMIs can remain the same and the loan can be paid within a shorter tenure,' said Sanjay Daga, CEO and managing director of Anex Advisory. Assume you have a ₹50 lakh home loan with an interest rate of 8% per annum and a tenure of 20 years. - Loan Amount: ₹50,00,000 - Interest Rate: 8% per annum - Tenure: 20 years - EMI: approximately ₹41,833 - Loan Amount: ₹50,00,000 - Interest Rate: 7.5% per annum - Tenure: 20 years - EMI: approximately ₹38,781 In this scenario, the EMI would decrease by approximately ₹3,052 ( ₹41,833 - ₹38,781), which is around a 7.3% reduction. If you choose to keep the EMI the same ( ₹41,833) and opt for a shorter tenure, you could potentially save around 2-3 years on your loan repayment, depending on the lender's calculations. The RBI has also shifted to a neutral stance. Which means that they are neither inclined to cut nor hike interest rates aggressively in the immediate future. This means that further rate cuts in the immediate future are not likely. Hence it makes this the perfect time to buy a house if you really need one. However, homebuyers who are undecided should not base their decision solely on the reduction in home loan interest rates. 'Since floating rate loans fluctuate over the loan tenure, interest rates may rise or fall in the future. Instead, buyers should also consider their other financial goals and ensure they can afford the EMI payments throughout different economic cycles,' explains Kumar. Anagh Pal is a personal finance expert who writes on real estate, tax, insurance, mutual funds and other topics
Fibre2Fashion
an hour ago
- Fibre2Fashion
Tariffs, capacity crunch strain global freight market: Dimerco
The global freight landscape is shifting as policy changes, regional bottlenecks, and trade realignments reshape logistics strategies, according to the June 2025 Asia-Pacific Freight Market Report by Dimerco Express Group. The report highlights ongoing impacts of US–China tariffs, rising air and ocean freight rates, and tightening capacity at key export hubs, signalling a potentially volatile summer shipping season. The report notes that US tariffs on Chinese goods, combined with China's temporary suspension of tariffs on US semiconductors, have triggered a sharp increase in shipments. Businesses are rushing to move goods before the 90-day reprieve ends in August, leading to shipping surges from Vietnam, Taiwan, and South China. This urgency is placing additional strain on already limited air and ocean freight capacity. Ocean freight rates are climbing sharply as carriers cancel sailings to manage capacity. In May, 8 per cent of East-West sailings were cancelled, and peak season surcharges are being applied in June. As a result, US-bound spot rates could reach as high as $8,000 per FEU in June. Dimerco's June 2025 Freight Market Report highlights rising freight rates, tight capacity, and shifting trade flows due to USâ€'China tariffs and China's temporary semiconductor tariff pause. Surging demand from Vietnam, Taiwan, and South China is already straining air and ocean freight. Port congestion in Europe and North America adds pressure. On the air side, airfreight capacity remains tight, especially in Southeast Asia and Taiwan. Airlines are diverting resources to transpacific and Latin American routes, while increased order volumes and revised flight schedules are further squeezing space from North Asia to the US. Meanwhile, European ports continue to face congestion due to labour shortages, strikes, and disruptions along inland waterways. In North America, summer shipments of perishables and limited flight availability—due to tariff-related airline adjustments—are creating added pressure at key ports, as per the report. Finally, the semiconductor sector is seeing notable realignment, as China's temporary easing of tariffs boosts chip-related exports. With the 90-day window set to close in August, logistics providers are closely monitoring developments, as changes could again shift sourcing patterns and freight flows. "Demand is shifting quickly, and the market is recalibrating week by week," said Alvin Fuh, vice president of ocean freight at Dimerco . "Shippers are accelerating bookings to stay ahead of volatility, but capacity remains tight and unpredictable." 'We're seeing increased US demand across sectors, but most of it is still moving by ocean. We expect airfreight to pick up mid-June as lead times tighten and spot options shrink,' Kathy Liu, vice president of global sales and marketing , said. The June report offers lane-level snapshots and updated space forecasts for all major Asia-Pacific, North America, and Europe trade lanes, with insights designed to help shippers stay agile in a shifting policy and capacity environment. Fibre2Fashion News Desk (RR)
NDTV
an hour ago
- NDTV
US, China To Hold Trade Talks In London Tomorrow, Trump Says "Should Go Well"
Washington: Three of President Donald Trump's top aides will face their Chinese counterparts in London on Monday for talks to resolve a trade dispute between the world's two largest economies that has kept global markets on edge. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in the talks, said Trump, who announced the talks in a post on his Truth Social platform but provided no more details. It was not immediately clear who would represent China. The Chinese embassy in Washington did not immediately respond to a request for comment. The White House did not immediately respond to a request for more details. "The meeting should go very well," Trump wrote. The scheduling of the meeting comes a day after Trump spoke to Chinese President Xi Jinping in a rare leader-to-leader call amid weeks of brewing trade tensions and a battle over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most US trading partners. China, meanwhile, has seen its own supply of key US imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 stock index, which at its lowest point in early April was down nearly 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the US-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. Beijing sees mineral exports as a source of leverage - halting those exports could put domestic political pressure on the Republican U.S. president if economic growth sags because companies cannot make mineral-powered products. In recent years, the United States has identified China as its top geopolitical rival and the only country in the world able to challenge the U.S. economically and militarily.
