Byju’s and the Board of Control for Cricket in India (BCCI) have resolved their conflict regarding Rs 158 crore in outstanding dues. This resolution was communicated to the National Company Law Appellate Tribunal (NCLAT) by the legal team representing Byju’s founder, ByjuRaveendran. According to the agreement, payments to the BCCI are scheduled for August 2 and 9, and will be made by RijuRaveendran, Byju’s brother and one of the company’s largest shareholders.
The agreement has come under scrutiny from Byju’s US-based lenders, who have requested the NCLAT to reject the settlement. Advocate Mukul Rohatgi, representing the American lenders, described the settlement as ‘tainted,’ alleging that it is being paid with ‘stolen money.’ The lenders questioned the source of the funds, saying, “How can someone who cannot even pay salaries suddenly pay Rs 150 crore?”
“Byju and Riju conspired and stole $500 million. It is our money which has been withdrawn by these fellows,” stated Mukul Rohatgi. This accusation comes in the wake of NCLAT initiating insolvency proceedings against Byju’s after the BCCI filed a complaint about the company’s failure to make sponsorship payments. This development is yet another blow to the edtech giant, which was valued at $22 billion in 2022 but has since encountered numerous challenges, including boardroom departures and conflicts with investors who have accused ByjuRaveendran of lapses in corporate governance.
Byju’s has also cut jobs and suffered a collapse in its valuation to less than $3 billion.
