The edtech major made the payment to the cricket board on the evening of July 30
Earlier in the day, BYJU’S lawyer Arun Kathpalia told the NCLAT that the company had “almost resolved” a dispute over unpaid fees to the BCCI
Earlier this month, the NCLT admitted the BCCI’s plea to initiate corporate insolvency resolution process against BYJU’S for not paying dues to the tune of INR 158.9 Cr
Troubled edtech major BYJU’S
reportedly transferred INR 50 Cr to the Board of Control for Cricket in India (BCCI) as part of the first tranche of payments to settle the ongoing insolvency dispute.
The edtech major made the payment to the cricket board on Tuesday (July 30) evening, Bloomberg reported, citing sources.
The development followed the National Company Law Tribunal (NCLT) admitting the BCCI’s plea to initiate the corporate insolvency resolution process against BYJU’S for not paying the dues to the tune of INR 158.9 Cr to the cricket body for a sponsorship deal.
Post the payment, the startup would still be liable for payments worth INR 108.9 Cr to the BCCI.
As per a separate Reuters report, the edtech major was planning to pay the outstanding amount to BCCI in three installments, starting with an upfront payment of INR 50 Cr. It also said that the terms of the settlement were still under consideration and could change.
Earlier on Tuesday, BYJU’S informed the National Company Law Appellate Tribunal (NCLAT) about its plans to pay a part of the dues to the cricket board.
Arguing for BYJU’S before the NCLAT, lawyer Arun Kathpalia said that the company had “almost resolved” a dispute over unpaid fees to the BCCI.
As per the Bloomberg report, a lawyer for the BCCI also confirmed before the appellate tribunal that both parties were engaged in settlement talks. The NCLAT will next hear the matter on Wednesday (July 31).
The payment of the first tranche is expected to offer some respite for BYJU’S and stave off the insolvency crisis for some time now. It is part of the startup’s efforts to help founder and CEO Byju Raveendran gain complete control of the company again.
However, the case is expected to continue and will only be dropped after BCCI officially informs the tribunal that it was withdrawing its case.
It is also pertinent to note that multiple other entities, including BYJU’S US-based Term Loan B lenders, have also filed insolvency petitions against the beleaguered company in the past.
BYJU’S, once the poster child of the Indian startup ecosystem, is battling multiple issues, including mass layoffs, a severe cash crunch, delay in filing financial statements, a slew of legal cases and mounting regulatory scrutiny. Making matters worse is a public spat with investors even as losses continue to mount for the company.
BYJU’S net loss surged 81% year-on-year YoY to INR 8,245.2 Cr in FY22.
