Byju Crisis: Bankruptcy proceedings have begun against edtech company Byju’s. The National Company Law Tribunal (NCLT) has handed over Byju’s management to a resolution professional for not paying Rs 158 crore to BCCI. Byju has appealed to the National Company Law Appellate Tribunal (NCLAT) to hear the matter as soon as possible. Against this action, the company’s CEO Byju Raveendran has said that if this action continues, Byju will shut down and thousands of people will lose their jobs.
158 crore rupees were not paid to BCCI
According to a Reuters report, Byju Ravindran has said in a court filing that bankruptcy proceedings against edtech giant Byju’s could cause huge losses to it. Byju had sponsored the Indian cricket team’s jersey. The BCCI has claimed that the company has not paid it Rs 158 crore. In this case, NCLT had dissolved the company’s board and taken away the management from Byju Ravindran. The resolution professional had also visited the company’s office.
Byju Ravindran said- thousands of employees will be affected
Byju’s was once India’s biggest startup. Its market value had reached $22 billion. Now the company’s valuation has come down to $1 billion. Byju Ravindran told the court that the daily operations of the company will be affected if the management goes out of his hands. The company’s business will end. This will affect thousands of employees. People will be forced to leave their jobs. Byju’s is already embroiled in a legal dispute with foreign investors. Now this dispute with BCCI has broken its back.
The company is broken by being caught in many controversies
Byju’s has faced many setbacks in recent months. Apart from legal disputes, it is also facing a cash crunch. Recently, the company’s investors voted to remove Byju Ravindran from the post. Apart from this, the company has also had to do large-scale layoffs. On the other hand, Byju has been continuously denying the allegations against him. Byju Ravindran has demanded from NCLAT to cancel the order of NCLT. He is ready to pay BCCI’s money in 90 days. The hearing of this case is going to be held on Monday.
