Byju‘s, the troubled ed-tech giant, is in active discussions to settle its outstanding dues with the Board of Control for Cricket in India (BCCI), as confirmed by lawyers from both parties during a National Company Law Appellate Tribunal (NCLAT) hearing on July 30. This step could help the cash-strapped startup avoid insolvency, according to Bloomberg.
Byju’s made a ₹500 million payment to the BCCI on Tuesday, marking the first installment towards resolving the dispute. The company’s lawyer, Arun Kathpalia, stated that the issue of unpaid fees has been “almost resolved” and that another tranche of the payment would be made by the evening. A BCCI lawyer also confirmed that both parties are engaged in settlement talks. The NCLAT will hold a further hearing on Wednesday.
The Corporate Insolvency Resolution Process (CIRP) was initiated against Byju’s by a lower court on July 16, based on a petition filed by the BCCI due to unpaid dues amounting to ₹1.59 billion. The court appointed a resolution professional to take control of the firm from its Chief Executive Officer, Byju Raveendran. Resolving this dispute and withdrawing the insolvency proceedings would provide the ed-tech company with a much-needed reprieve. The BCCI will need to officially inform the court before withdrawing the case.
Byju’s declined to comment on the developments, and Bloomberg’s attempts to reach the BCCI for a response went unanswered.
Founded by Byju Raveendran, the ed-tech firm was once valued at $22 billion and emerged as a leading startup in India during the Covid-19 pandemic. However, it is now facing numerous legal challenges and financial difficulties. The case with the BCCI is one of several insolvency cases that Byju’s is currently navigating both in India and abroad.
