
In a significant development, the Board of Control for Cricket in India (BCCI) and Byju’s have agreed to settle a payment dispute involving ₹158 crore. The dispute, which had escalated to legal proceedings, saw Byju’s parent company, Think and Learn, make an initial payment of ₹50 crore to the BCCI.
Key Points:
- Settlement Details:
- Byju’s paid ₹50 crore to BCCI as of July 30.
- Remaining balance to be paid in two tranches by August 9.
- Payment made by Riju Raveendran, not Byju Raveendran or Think and Learn.
- Legal Proceedings:
- Byju Raveendran challenged the initiation of insolvency proceedings against Think and Learn.
- The case was brought before the National Company Law Appellate Tribunal (NCLAT) after the National Company Law Tribunal (NCLT) suspended the board of Think and Learn and appointed an interim resolution professional.
- BCCI’s Claim:
- BCCI filed a plea claiming a default of ₹158 crore by Byju’s, related to branding partnerships.
- Byju’s had announced it would not renew its branding partnerships with BCCI, ICC, and FIFA.
US Lenders’ Objections:
- Concerns Over Misappropriated Funds:
- US lenders raised objections to the settlement, alleging the misuse of funds.
- They claimed that Byju Raveendran and his brother diverted over $500 million, suggesting that these funds should not be used to settle debts with BCCI.
- Prioritisation of Payments:
- Lenders questioned the prioritisation of payments to operational creditors over financial creditors, especially given Byju’s financial difficulties, including issues paying employee salaries.
Background of the Dispute:
- The dispute originated when BCCI filed a plea with the NCLT on September 8, 2023, following Byju’s decision not to renew its branding partnerships. The NCLT issued a notice to Byju’s regarding the payment default, leading to the current legal proceedings.
Detail | Information |
---|---|
Amount Paid to BCCI | ₹50 crore |
Total Claimed by BCCI | ₹158 crore |
Settlement Deadline | August 9 |
Legal Bodies Involved | NCLT, NCLAT, Karnataka High Court |
US Lenders’ Allegations | Misappropriation of $500 million |
Byju’s Branding Partnerships | Not renewed with BCCI, ICC, FIFA |
This settlement marks a significant step in resolving financial disputes for Byju’s, amidst broader challenges including legal issues and internal financial management concerns. The outcome of the remaining payments and the reaction of other stakeholders, especially US lenders, will be closely watched in the coming weeks.