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BCCI Says Byju’s Has Not Paid 158 Crore As Agreed
New Delhi – The Board of Control for Cricket in India (BCCI) has filed a corporate insolvency plea against education technology startup Byjus seeking to recover dues worth Rs 158 crore related to a failed sponsorship deal.
The plea was filed before the Bengaluru bench of the National Company Law Tribunal (NCLT) under Section 9 of the Insolvency and Bankruptcy Code against Think & Learn Pvt Ltd, the parent company of Byjus.
According to BCCI’s petition, a notice was sent to Byjus in January 2023 demanding payment of Rs 158 crore due under the sponsorship contract which ended in March 2022. Byjus had agreed to an extension of the deal till November 2023.
The NCLT bench has issued a notice to Byjus directing it to reply within two weeks. The next hearing is scheduled on 22 December.
Byjus is already facing financial issues with reports of several employees not receiving salaries due to cash crunch. The company blamed it on a technical glitch but the non-payment has affected over 1,000 staff across levels.
Additionally, the Enforcement Directorate (ED) has issued show-cause notices to Byjus and its founder Byju Raveendran for alleged violations of Foreign Exchange Management Act (FEMA) worth Rs 9,362 crore.
Byjus’ Challenges and Legal Troubles
Byjus’ current challenges and legal troubles have escalated the ongoing legal battle with BCCI. The situation has taken a toll on Byjus’ reputation and financial standing. Their valuation has plummeted from a peak of $22 billion to below $3 billion, reflecting the severity of their troubles.
Moreover, Byjus has been accused of defaulting on a payment of Rs 158 crore, which led to the filing of a corporate insolvency plea by BCCI. Additionally, Byjus has received a notice for alleged violations of the Foreign Exchange Management Act, further complicating their legal predicament.
These challenges and legal troubles have undoubtedly intensified the confrontation between Byjus and BCCI, leaving both parties embroiled in a high-stakes battle for resolution.
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