Byju's Promoters Defend Settlement Amid Insolvency Allegations

Byju's promoters informed the NCLAT that the company has raised Rs 159 crore from share sales to settle dues with BCCI, denying allegations of 'round-tripping.' The tribunals continue hearings on the insolvency process, stressing that the company's closure would affect its 27,000 employees and overall operations.

Byju's promoters on Thursday informed the National Company Law Appellate Tribunal (NCLAT) that they have raised Rs 159 crore through the sale of shares to settle their dues with the Board of Control for Cricket in India (BCCI), refuting allegations of financial misconduct.

The NCLAT stated it would continue to hear the plea challenging the insolvency proceedings against Byju's on Friday. Until then, the tribunal directed the interim resolution professional (IRP) of Think and Learn Pvt Ltd, which owns Byju's, not to form a Committee of Creditors (CoC) until August 2.

The tribunal postponed its decision on the settlement after a US-based creditor accused Byju's founder of 'round-tripping' funds. However, lawyers for the promoters argued that the settlement funds were legitimately raised through the sale of shares and properly taxed. The tribunal will continue proceedings as the promoters aim to prevent the company's insolvency process, which threatens its operations and employees' livelihoods.

(With inputs from agencies.)