New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Wednesday adjourned its decision on the settlement between embattled ed-tech giant Byju’s and the Board of Control for Cricket in India (BCCI), following serious allegations of ’round-tripping’ leveled by a US-based creditor.
At the heart of the controversy is a proposed settlement of Rs 158 crore that Byju’s, through its promoter Riju Raveendran (brother of founder Byju Raveendran), was set to pay to the BCCI. However, Gas Trust LLC, a US-based creditor claiming a staggering Rs 8,000 crore debt from Byju’s, has vehemently opposed the settlement, alleging that the funds involved are tainted and were illegally diverted from the creditor’s assets.
The Chennai bench of NCLAT has issued a directive to Byju’s promoters to provide a written assurance by Thursday confirming that the aforementioned Rs 158 crore is clean and does not contravene any orders issued by a US court.
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Additionally, the tribunal has restrained the Interim Resolution Professional (IRP) of Think and Learn, the parent company of Byju’s, from constituting the Committee of Creditors (CoC) until the next hearing on August 1.
Senior advocate Mukul Rohatgi, representing Gas Trust LLC, argued vehemently against the settlement, painting it as a desperate attempt by Byju’s to shield its assets. He presented evidence from a US court ruling that accused Riju Raveendran of deception and negligence in recovering missing funds. Rohatgi warned that if the settlement is approved, he would pursue the insolvency plea filed by the US-based creditor with renewed vigor.
Byju’s, on the other hand, has defended the settlement, asserting that the funds are legitimate and sourced by Riju Raveendran independently. The company has also challenged the initiation of insolvency proceedings against Think and Learn, a case filed by the BCCI over a default of Rs 158.9 crore.
The case has taken a dramatic turn with allegations of financial misconduct and a high-stakes battle between the ed-tech giant, its creditors, and the cricket board. The NCLAT’s decision on Thursday is eagerly awaited as it could have far-reaching implications for Byju’s future.
