NCLT admits plea for insolvency proceedings against Byju’s

BCCI move is to recover Rs158cr unpaid dues

BENGALURU: The National Company Law Tribunal’s (NCLT) Bengaluru bench has accepted a plea from the Board of Control for Cricket in India (BCCI) to initiate insolvency proceedings against Byju’s, the financially distraught edtech company led by Byju Raveendran.

This move follows BCCI’s efforts to recover alleged unpaid dues totaling Rs158 crore from Byju’s, linked to a sponsorship contract for the Indian cricket team’s jerseys.

The petition, filed by BCCI last year against Think & Learn Pvt Ltd, the parent company of Byju’s, highlights the firm’s failure to meet its financial obligations.

The order stated, “The Interim Resolution Professional shall, after collating all claims received against Think & Learn Pvt Ltd, the Corporate Debtor, and determining the financial position of the Corporate Debtor, constitute a Committee of Creditors.”

The next hearing is scheduled for November 15, during which Byju’s stated it is in discussions with BCCI to resolve the pending issues.

Byju’s, which previously held prominent sponsorship deals with the BCCI, International Cricket Council (ICC), and Federation Internationale de Football Association (FIFA), saw these partnerships lapse in 2023 without renewal.

In a significant blow to the edtech giant, tech investor Prosus wrote off its 9.6 per cent stake in Byju’s, becoming the first major investor to completely write off its investment.

Prosus attributed this decision to a steep decline in Byju’s valuation, which had peaked at $22 billion in 2022 but has since plummeted due to financial, legal, and operational difficulties.