The BCCI has taken legal action by approaching the NCLT to initiate insolvency proceedings against BYJU’S due to the latter’s failure to fulfil a Rs 158 crore payment obligation according to their contract for sponsoring the Indian cricket team’s jerseys. The NCLT issued a notice to BYJU’S, granting them a two-week window to respond, while the BCCI was given an additional week to submit its rejoinder.
As per the NCLT website, BYJU’S received a general notice on January 6, 2023, citing the default amount of Rs 158 crore, excluding TDS. BYJU’S refuted the BCCI’s claims, citing ongoing discussions to resolve the matter. However, the BCCI stressed its intention to pursue legal action if the outstanding amount remained unpaid within the specified time frame.
This recent conflict adds to BYJU’S string of controversies, including accusations of overcharging parents, engaging in deceptive marketing strategies, and facing legal actions from employees.
The BCCI had filed a case against Think and Learn Pvt Ltd, BYJU’S parent company, in the National Company Law Tribunal on September 8. The case was officially registered on November 15, and the most recent hearing occurred on November 28.
In 2019, BYJU’S secured a prominent sponsorship deal with the Indian cricket team, initially slated until March 2022, but later sought an extension through the 2023 season. However, due to financial constraints in the Indian startup ecosystem by the end of 2022, BYJU’S made the difficult decision to terminate its jersey sponsorship deal with the BCCI.
Additionally, BYJU’S is facing scrutiny from the Enforcement Directorate (ED) for potentially violating anti-money laundering norms in foreign exchange transactions. The company’s delayed financial disclosures led to the departure of auditor Deloitte and three board members. Recently, Prosus devalued BYJU’S to under $3 billion.
