The Board of Control for Cricket in India (BCCI) asserts that Byju’s is in default of a payment totaling Rs 158 crore, prompting the BCCI to instigate corporate insolvency proceedings against the troubled edtech company through the National Company Law Tribunal (NCLT) in Bengaluru.
The case, titled BCCI v. M/s. Think & Learn Pvt. Ltd., was filed under Section 9 of the Insolvency and Bankruptcy Code 2016 and was recently addressed by a bench at NCLT Bengaluru, comprising Judicial Member K. Biswal and Technical Member Manoj Kumar Dubey. The tribunal, on November 28, issued a notice to Byju’s, seeking its response within two weeks. The proceedings are scheduled to resume on December 22.
This development follows Byju’s earlier announcement of discontinuing its sponsorship of the Indian cricket team jersey, emphasizing a shift towards profitability. Engaged in a comprehensive strategic restructuring, Byju’s is undergoing leadership changes to enhance operational efficiency, reduce losses, and achieve profitability.
As part of this initiative, the company plans to lay off approximately 4,000 employees, constituting over 11% of its total workforce, in the coming weeks. Arjun Mohan, recently appointed as the CEO of Byju’s India business, is spearheading this restructuring effort.
Earlier this year, Byju’s opted not to renew its prominent branding partnerships with BCCI, ICC, and FIFA, signaling a departure from high-profile sports sponsorships. The company faced a setback in June when Dream11 replaced it as the jersey sponsor for Team India, in a deal costing Byju’s Rs 358 crore. This transition occurred shortly after the abrupt end of Byju’s sponsorship deal with BCCI.
The latest legal challenge arises amidst a backdrop of multiple hurdles for Byju’s, including the quest for fresh capital, delays in financial reporting, and ongoing legal disputes with lenders. Complicating matters further, the Enforcement Directorate issued a show-cause notice of Rs 9,362 crore to Think & Learn and its founder Byju Raveendran, alleging violations of foreign exchange rules in attracting foreign investments from 2011 to 2023.
As Byju navigates these intricate challenges, the outcome of the insolvency proceedings will significantly impact the company’s trajectory and broader edtech landscape.
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