BCCI moves for bankruptcy against Byju's in an attempt to get Rs. 158 crore in payment

 BCCI moves for bankruptcy against Byju's in an attempt to get Rs. 158 crore in payment

BCCI moves for bankruptcy against Byju's in an attempt to get Rs. 158 crore in payment

In an attempt to recoup debts of Rs 158 crore, the Board of Control for Cricket in India (BCCI) has filed a case against Think and Learn Private Limited (BYJU) before the National Company Law Tribunal (NCLT) bench in Bengaluru. In accordance with Section 9 of the Insolvency and Bankruptcy Code (IBC), the petition has been filed.

 

The BCCI notified the court that, in January of this year, it had given Byju a letter requesting payment of Rs 158 crore, with tax deducted at source (TDS) excluded.

Byju was given notice by the NCLT bench and instructed to reply within the next two weeks. The case's next hearing is scheduled on December 22, 2023.

 

The money that BCCI is requesting from Byju's is connected to the agreement to sponsor the Indian cricket team's shirt, according to an article published in the Times of India (TOI). The agreement ends in March 2022.

 

"Up to this point, Byju's has paid all payments. Currently the most valued startup, BCCI had instructed the firm to go on till it found a new sponsor. financing the winter Byju intended to leave during this, but the report said that BCCI persuaded him to remain for a little while longer. As a result, Byju's and the board extended their jersey sponsorship deal in June for an additional anticipated US$35 million (million) until November 2023."

 

The publication was informed by a Byju representative that the corporation is in discussions with the BCCI to find a solution.

 

The last several months have seen Byju's experience financial difficulties, mostly as a result of high-value purchases and a lack of capital.

 

Some Byju's workers reportedly haven't received their wages, and the business has attributed this to technological difficulties. It seems that many persons have been impacted by the approximately 1,000 workers' salary postponement. On the other hand, there has been no effect on the Aakash Institute's staff.

 

Some of Byju's workers have apparently received their November paychecks after payments to over 1,000 employees were delayed by a "technical glitch."

 

The ed-tech company and its founder, Byju Raveendran, received a show-cause notice from the adjudicating body of the Enforcement Directorate (ED) last month about purported breaches of Rs 9,362.35 crore under the Foreign Exchange Management Act (FEMA). ,

 

The ED searched Think & Learn's location in April 2023 as well as Byju Raveendran's home. They found all of the investments the business had received as well as the documentation for the overseas investments they had made.

 

"It was discovered at the end of the inquiry that Think and Learn Private Limited and Byju Raveendran had neglected to file import documentation in relation to advance remittances made outside of India, therefore failing to realize the revenues of exports conducted outside of India. violated the FEMA regulations by failing to submit paperwork against Foreign Direct Investment (FDI) received by the firm, delaying the filing of records against FDI received by the company, and failing to file documents over remittances the company made outside of India. By neglecting to assign shares to him, the ED claims. (Read: ED sends Byju Raveendran a show-cause notice in a FEMA violation case.)

 

The questions in the notice, according to a BYJU officer who spoke with IANS, are only technical in nature. For example, there was a delay in submitting the Annual Performance Report (APR) for foreign direct investment (ODI) totaling around Rs 8,000 crore. Statutory audit postponed (FY21–22).