Byju's Legal Troubles Delay Employee Salaries Amid Court Ruling

Edtech firm Byju's has delayed July salaries due to a temporary stay by the Supreme Court on NCLAT's decision, impacting the company's finances. Despite legal challenges, Byju's founder Byju Raveendran reassures employees of forthcoming payments and emphasizes ongoing efforts to sustain the company's operations.

Edtech giant Byju's has yet to pay its employees' July salaries due to a Supreme Court stay on a recent National Company Law Appellate Tribunal (NCLAT) ruling, according to an internal communication from the company. The delay is attributed to financial constraints exacerbated by ongoing legal disputes.

On August 2, NCLAT had approved a Rs 158.9 crore dues settlement with BCCI and set aside insolvency proceedings against Byju's. However, the Supreme Court later stayed this decision, putting further financial strain on the ed-tech firm. Byju Raveendran, founder and CEO of Think and Learn, which owns Byju's, indicated the company is on the brink of reversing a negative business cycle but faces substantial legal roadblocks.

Raveendran assured employees that their salaries would be paid promptly once the company regains control of its finances. The company has faced litigation from foreign lenders and claims it complied fully with legal requirements in settling dues with the BCCI. Furthermore, Raveendran dismissed allegations of misusing funds raised in the US and emphasized Byju's ongoing commitment to transitioning to a sustainable business model.

(With inputs from agencies.)