The saga surrounding Byju’s, India’s once-mighty edtech unicorn, continues to unfold with fresh twists and turns. On Tuesday, the Board of Control for Cricket in India (BCCI) filed an urgent plea seeking the withdrawal of its insolvency case against the embattled company. The plea comes in the wake of the Supreme Court’s decision to quash a previous settlement agreement between the parties and direct them to approach the National Company Law Tribunal (NCLT) afresh.
The BCCI’s counsel argued that granting their withdrawal application would render other pleas, including those filed by US-based Glas Trust and Aditya Birla Finance (ABF) for the removal of the current resolution professional (RP), irrelevant. The NCLT is scheduled to hear the case on 18 November.
This latest development is another chapter in Byju’s ongoing financial crisis, which has been marked by lawsuits, investigations, and a struggle to maintain financial stability. The company is facing pressure to repay a $1.2 billion loan, while key investors demand asset disclosures.
The Supreme Court’s decision to reinstate insolvency proceedings stemmed from an appeal filed by Glas Trust, which challenged an earlier decision by the National Company Law Appellate Tribunal (NCLAT) to halt the insolvency process against Byju’s parent company, Think & Learn Pvt. Ltd.
Glas Trust alleged that settlement funds raised by Riju Raveendran, the brother of Byju’s founder, Byju Raveendran, were “tainted” and should have been allocated to financial creditors. The trust also highlighted ongoing Enforcement Directorate investigations into the edtech’s finances, noting that Byju currently resides in Dubai, while Riju is based in London.
Furthermore, Glas Trust and ABF filed a lawsuit in September alleging misconduct by Byju’s RP, Pankaj Srivastava, in the insolvency process. These actions have effectively shifted control from the company’s founder to its creditors.
The BCCI’s involvement in the case dates back to a 2019 sponsorship deal that saw Byju’s branding appear on the Indian cricket team’s jerseys. The deal, extended until November 2023, led to disagreements over payments, prompting the BCCI to file an insolvency petition against Byju’s in June 2023.
As the legal battle unfolds, Byju’s faces an uncertain future. The company, which once boasted a peak revenue of ₹ 10,000 crore in 2021 and employed over 85,000 people, is now grappling with financial strain and a loss of control. The outcome of these proceedings will have significant implications for the company’s future and the broader edtech landscape in India.
