NCLAT Defers Decision on Byju's and BCCI Settlement Amid 'Round-Tripping' Allegations

NCLAT deferred its decision on the Byju's and BCCI settlement after allegations of 'round-tripping' by Byju's founder surfaced. The tribunal asked Riju Raveendran to provide an undertaking by Thursday about the legality of the funds. The interim resolution professional is instructed not to form a Committee of Creditors until August 1.

The Insolvency Appellate Tribunal (NCLAT) on Wednesday deferred its decision regarding the settlement between Byju's and the Board of Control for Cricket in India (BCCI) following allegations of 'round-tripping' by the edtech firm's founder, Byju Raveendran.

The NCLAT's Chennai bench has asked the now-suspended promoters of Byju's to submit an undertaking by Thursday confirming that the over Rs 158 crore to be paid by Riju Raveendran, the brother of Byju Raveendran, is legitimate and not in violation of a US court order.

Meanwhile, the tribunal has also directed the interim resolution professional (IRP) of Think and Learn Pvt Ltd, which owns Byju's, to refrain from forming a Committee of Creditors (CoC) until August 1, the next hearing date. During the proceedings, Byju's representatives presented a draft memorandum of settlement with BCCI, detailing the payment plan in three installments.