Byju’s, the cash-strapped ed-tech company, is moving towards resolving its financial dispute with the Board of Control for Cricket in India (BCCI). The company has made an initial payment of ₹500 million to the cricket board, according to reports.
The dispute over unpaid fees, which has been a major issue for Byju’s, is nearing resolution, with lawyers from both sides informing the National Company Law Appellate Tribunal (NCLAT) on July 30, 2024, that the matter is “almost resolved.” Arun Kathpalia, the attorney representing Byju’s, indicated that the company will transfer another tranche of funds by the end of the day. A BCCI lawyer confirmed that settlement discussions are ongoing.
This payment represents the first step in addressing the outstanding dues, which amount to ₹1.59 billion. The BCCI had filed a petition that led to Byju’s entry into the Corporate Insolvency Resolution Process (CIRP) on July 16, 2024. The court’s decision included appointing a resolution professional to manage the firm’s affairs, removing control from Byju Raveendran, the company’s CEO.
The resolution of this dispute could provide Byju’s with a crucial opportunity to avert insolvency and stabilize its operations. The NCLAT is scheduled to hold a further hearing on the matter.
Byju’s, once valued at $22 billion and a prominent figure in the Indian startup scene during the COVID-19 pandemic, has faced numerous legal and financial challenges recently. The BCCI case is part of a broader set of insolvency issues the company is addressing both in India and internationally.
Byju’s declined to comment on the ongoing settlement, and efforts to reach the BCCI for additional information were unsuccessful.
