"Take It When You Pay Refund": Family Takes TV From Byju's Office Over Delay In Refund
In a strange turn of events, a family can be seen removing a TV from a Byju’s office in protest after unsuccessful attempts to secure a refund for an unused tablet and learning programme.
Reportedly, despite following the startup’s refund procedures for weeks, they never received any updates. After undergoing several obstacles and extended delays, the family took things in their own hands. After visiting the office, they dismantled the TV from the wall and can be seen taking it away. In a now-viral video, the incident has sparked a wider discussion about customer service standards in the edtech sector. The frustrated parents can be heard saying “Take it when you pay the refund” to the office staff.
Once celebrated as the epitome of India’s start-up community, the edtech firm has come under scanner as the Enforcement Directorate (ED) has pushed for a lookout notice to pursue CEO Byju Raveendran to prevent him from leaving the country.
This comes amidst the ED’s allegations of substantial foreign remittances and investments abroad by the edutech firm led by Raveendran. According to earlier statements by the ED, these violations fall under the provisions of the Foreign Exchange Management Act (FEMA) and have allegedly led to a loss of revenue for the Indian government.
An extraordinary general meeting (EGM) is slated for today, where Raveendran is expected to be removed from his leadership role.
Recently, while responding to a petition filed by Byju’s parent company, Think & Learn, the Karnataka High Court ordered that any resolutions proposed for the EGM, called by investors, will be deemed invalid until the final hearing and disposition of the petition. However, the court has allowed the EGM to proceed as scheduled.
As per reports, a Byju’s spokesperson stated, “This EGM is procedurally invalid, contractually in contravention of our Articles of Association and Shareholders” Agreement, legally on the wrong side of the Companies Act, 2013. Byju Raveendran or any other Board member will not attend this invalid EGM. This means the EGM, if it is still summoned, will not have the required quorum and cannot proceed to discuss or vote on the agenda.”
Previously, the firm was accused of a toxic work culture and aggressive marketing that harassed parents. Amid layoffs and accusations of financial mismanagement, the edtech startup had spent huge amounts on sponsorship of the Indian cricket team, the Football World Cup, and signing the legendary footballer Lionel Messi as global ambassador. The downfall gained speed when Byju’s incurred heavy losses and the CEO had to mortgage his properties to get a loan to pay the salaries of the staff.
Prior to the ED”s notice against the edtech firm’s foreign investment, the ED had issued notices to its parent company, Think & Learn, over alleged violations of over Rs 9,300 crore under FEMA. Byju”s had stated that the questions raised by the ED were “solely technical in nature.”
Once valued at over $20 billion, Byju’s has incurred massive losses since last year, with a valuation dip of around 90 percent. Moreover, the startup has also found itself in a legal battle with US lenders over a loan of $1.2 billion.
