Byju's Faces Insolvency Over Unpaid Fees to BCCI

Byju's, once valued at USD 22 billion, now faces insolvency proceedings for failing to pay Rs 158.9 crore to BCCI. The National Company Law Tribunal (NCLT) suspended its board and appointed Pankaj Srivastava as interim resolution professional. The company plans to challenge the order but aims for an amicable settlement.

Edtech giant Byju's, previously India's highest-valued start-up at an estimated USD 22 billion, is now grappling with insolvency proceedings due to a failure to remit Rs 158.9 crore to the Board of Control for Cricket in India (BCCI).

The National Company Law Tribunal's (NCLT) Bengaluru bench announced the commencement of bankruptcy proceedings against Byju's on Tuesday, appointing Pankaj Srivastava as interim resolution professional. Consequently, the company's board of directors has been suspended, and its assets have been frozen.

Founder and CEO Byju Raveendran is set to report directly to the resolution professional. Despite Byju's indicating a willingness to reach an amicable settlement with BCCI, sources reveal that the company intends to contest the NCLT decision at the appellate tribunal, NCLAT.

(With inputs from agencies.)