Byju’s, once a leading edtech company, is caught in a legal and financial battle over its debts and an unpaid sponsorship deal with the Board of Control for Cricket in India (BCCI). The company’s lenders and its suspended directors are in a dispute over control, and the matter has now reached the National Company Law Appellate Tribunal (NCLAT).
The trouble started when Byju’s failed to pay back a massive loan. A group of lenders, represented by Glas Trust, claims that the company owes them Rs 11,432 crore. Since Byju’s was unable to repay, these lenders took the matter to the National Company Law Tribunal (NCLT), which recently ruled in their favor. This decision allows the lenders to take charge of Byju’s financial decisions. However, the company’s founder, Byju Raveendran, and other suspended directors have challenged this ruling. They argue that the NCLT only addressed the lenders’ request but did not resolve a separate Rs 158 crore dispute with the BCCI.
The BCCI issue dates back to 2019 when Byju’s signed a deal to sponsor the Indian cricket team’s jersey. The company later defaulted on a Rs 158 crore payment. After months of legal proceedings, Byju’s reached a settlement with the BCCI, which was initially approved by the NCLAT. However, Glas Trust objected, saying that such a settlement should only be made with lender approval. Now, with the lenders in control, the BCCI payment remains unresolved.
Byju’s suspended directors argue that if the settlement with BCCI is honored, the company could exit insolvency, meaning it would no longer be under lender control. This would allow Byju Raveendran to regain control of the company. But with the lenders opposing the move, the matter has now reached the NCLAT, which will hear the case on February 6.
Meanwhile, Byju Raveendran is in Dubai, and the company continues to struggle with financial and regulatory challenges. The future of the edtech giant depends on how the courts rule in the coming days.
