The Board of Control for Cricket in India (BCCI) informed the National Company Law Appellate Tribunal (NCLAT) today that it has reached a settlement with the edtech giant Byju’s over unpaid dues amounting to Rs 158 crore. This settlement comes as a significant development in the insolvency proceedings initiated by the BCCI against Byju’s.
The settlement details revealed that Byju’s has already paid Rs 50 crore, with an additional Rs 25 crore to be paid tomorrow, and the remaining Rs 83 crore by August 8. The payments are being made by Riju Raveendran, brother of Byju’s CEO, Byju Raveendran.
However, the settlement has not been without controversy. A US-based financial creditor opposed the repayment plan, alleging that the funds used for the settlement are part of stolen money. Senior Advocate Mukul Rohatgi, representing the creditor, claimed that the Raveendran brothers siphoned off over Rs 500 crore, according to findings by a US court.
Rohatgi further alleged that Byju Raveendran has fled to Dubai amidst these financial troubles, branding him a “fugitive from justice.” He argued that the Rs 158 crore being paid to the BCCI is part of the $553 million allegedly misappropriated by the Raveendran brothers.
In response, Senior Advocate Harish Salve, representing the BCCI, vehemently denied the accusations, stating that the cricket board would never accept tainted money. Solicitor General Tushar Mehta, also appearing for the BCCI, emphasized that the creditor’s concerns were based on assumptions without concrete evidence.
The creditors have urged the NCLAT to direct Byju’s to provide an undertaking confirming that the money being paid is not sourced from Byju Raveendran’s alleged misappropriations. Meanwhile, Byju Raveendran’s counsel sought assurance that the insolvency proceedings would not obstruct the proposed settlement.
Adding to the complexity of the situation, the interim resolution professional (IRP) overseeing the insolvency proceedings reported non-cooperation from Byju’s. The IRP stated that Byju’s has not provided necessary access to their facilities and data, with coaching centers shut and data deleted from the company’s laptops.
The NCLT in Bengaluru had admitted an insolvency plea by the BCCI against Byju’s on July 16. Byju Raveendran subsequently challenged this order in the NCLAT on July 23.
This settlement marks a critical juncture in the ongoing legal and financial turmoil surrounding Byju’s, once a poster child of India’s booming edtech sector. As the company navigates through these troubled waters, the eyes of the financial world remain fixated on the unfolding drama, eagerly awaiting further developments.
For now, the BCCI appears to have secured its dues, but the shadow of controversy continues to loom large over Byju’s, with serious questions about the integrity of its financial practices and the future of its operations.
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