NCLT gives BYJU'S 2 weeks to reply as BCCI claims edtech firm defaulted payment of Rs 158 cr

The Board of Control for Cricket in India (BCCI) and educational technology company (edtech) BYJU'S have been engaged in a legal battle over alleged payment defaults. On Monday, it emerged that the BCCI claimed that BYJU'S has defaulted on a payment of Rs 158 crore under a sponsorship agreement signed in 2019.

BCCI has approached the NCLT seeking to initiate insolvency proceedings against BYJU'S for the latter's failure to pay Rs 158 crore as per their contract on the sponsorship of the jerseys of the Indian cricket team. NCLT has on Monday issued notice to BYJU'S seeking their response.

“It is stated that the General notice was issued to BYJU’s vide email dated 06.01.2023 and the default amount of Rs 158 crore. excluding TDS as reflected,” the NCLT website showed.

NCLT has granted BYJU'S two weeks to file its reply and another week for the BCCI to file its rejoinder.

BYJU'S had recently denied the BCCI's claims, stating that the company is in discussions with the BCCI to resolve the matter. However, the BCCI had stated that it is seeking legal action against BYJU'S if the company does not pay the outstanding amount within the stipulated time frame.

This dispute is the latest in a series of controversies that have plagued BYJU'S in recent months. The company has been accused of overcharging parents, engaging in misleading marketing practices, and facing employee lawsuits.

The BCCI had filed a case against Byju's parent company, Think and Learn Pvt Ltd, in the National Company Law Tribunal (NCLT) on September 8. The case was officially registered only on November 15, and the last hearing was held on November 28.

In 2019, BYJU'S secured a high-profile sponsorship agreement with the Indian cricket team, replacing smartphone brand OPPO. The deal was initially set to run until the end of March 2022, but BYJU'S sought an extension to cover the 2023 season.

However, the onset of the funding winter in the Indian startup ecosystem forced BYJU'S to reconsider its financial commitments. In December 2022, the company made the difficult decision to terminate its jersey sponsorship deal with the BCCI.

Moreover, BYJU'S has found itself under the microscope of the Enforcement Directorate (ED), which issued a showcause notice to the company for allegedly violating anti-money laundering (AML) norms. The ED is investigating potential irregularities in BYJU'S foreign exchange transactions.

The excessive delay in disclosing financial accounts also resulted in the departure of auditor Deloitte, as well as three important board members. Last week, Prosus slashed the valuation of BYJU'S to under $3 billion.

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