Byju’s set to settle dues with BCCI; pays ₹500 million as first instalment

Troubled ed-tech company Byju's is in talks to settle its dispute over outstanding dues with the Board of Control for Cricket in India (BCCI), lawyers of both sides told the National Company Law Appellate Tribunal (NCLAT) on Tuesday, July 30. The move may give the cash-strapped startup a chance to resolve a key dispute and prevent insolvency, Bloomberg reported.

Byju's transferred ₹500 million to the BCCI on Tuesday, reported Bloomberg, quoting people in the know. This is the first payment towards resolving the disagreement.

Byju's has “almost resolved” the dispute over the unpaid fees with the BCCI, and will pay “a certain tranche of the money” by this evening, said Arun Kathpalia, the lawyer who was representing the ed-tech company in the court hearing, as per the news report. A BCCI lawyer also told the court that both the parties were in settlement talks. The NCLAT will have a further hearing on the matter on Wednesday.

A lower court on July 16 admitted Byju's into the Corporate Insolvency Resolution Process (CIRP) based on a petition filed by the BCCI due to unpaid dues. The ed-tech firm's parent company, Think & Learn, could not pay the BCCI ₹1.59 billion. The court also appointed a resolution professional to take control of the firm from Chief Executive Officer Byju Raveendran, as per the report.

The court's decision towards the withdrawal of insolvency proceedings would give the ed-tech firm a new lease of life. The BCCI will have to inform the court officially before a case withdrawal, as per the report.

Byju's refused to comment on the development, and Bloomberg's emails and calls to the BCCI remained unanswered.

The ed-tech firm founded by Byju Raveendran was once valued at $22 billion. It became the face of startups in India during the Covid-19 pandemic. However, the company is now grappling with legal challenges and fund shortages. The BCCI case is one of the many insolvency cases that the company is fighting in India and abroad, as per the report.