While CBIC has filed a claim worth INR 157 Cr, Karnataka tax authorities have sought dues worth INR 691 Cr
The Insolvency and Bankruptcy Board’s documents describe the outstanding amounts as "statutory dues”
So far, claims worth over INR 13,027 Cr have reportedly been received from 1,887 creditors of BYJU’S, most of which are still under review
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Troubles of BYJU’S seem far from over. Indian tax authorities have sought dues worth over INR 848 Cr ($101 Mn) from the edtech major as part of the company’s ongoing insolvency proceedings.
As per the Insolvency and Bankruptcy Board’s documents seen by Inc42, the Central Board of Indirect Taxes and Customs (CBIC) has filed a claim worth INR 157 Cr ($18.7 Mn) before the insolvency resolution professional Pankaj Srivastava and Karnataka Commercial tax Department has sought dues worth INR 691 Cr ($82.3 Mn).
The document described the outstanding amounts as “statutory dues”, without further elaboration.
This amount effectively implies the total amount local authorities believe that BYJU’S owes them. This comes after months of complaints against the company for delays in paying salaries and layoffs.
The development was first reported by Reuters.
At present, the troubled edtech major is being run by the court-appointed resolution professional, Srivastava, who has invited lenders, employees, vendors and the government to claim their respective outstandings.
So far, claims worth over INR 13,027 Cr have been received from 1,887 creditors, most of which are still under review.
Meanwhile, Glas Trust, a consortium of the edtech’s TLB lenders, has filed the biggest claim at over INR 11,432 Cr, while BYJU’S wholly owned subsidiary Aakash Education Service has also claimed dues worth INR 1,404 Cr.
With this, the once poster child of the edtech ecosystem continues to be roiled in choppy waters. The company has been on a downslide for the past two years, having fired more than 5,000 employees and delayed salaries of its workforce multiple times.
On top of the capital crunch, mounting losses, multiple legal and insolvency cases and saturating growth too have wreaked havoc on the company.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.