The US based lenders of Byju’s reportedly questioned the settlement and called it a 'tainted settlement'.
The National Company Law Appellate Tribunal (NCLAT) postponed its decision on July 31 about accepting a settlement of Rs 158 crore between Byju Raveendran and the Board of Control for Cricket in India (BCCI). This is after allegations of suspicious financial transactions by U.S.-based lenders, as per a Moneycontrol report.
Byju's and the Board of Control for Cricket in India (BCCI) reached a settlement over outstanding payments, as per an Economic Times report. The National Company Law Appellate Tribunal (NCLAT) on Wednesday was informed that the ed-tech firm already transferred Rs 50 crore to the board as part of its first installment.
The US based lenders of Byju’s reportedly questioned the settlement and called it a 'tainted settlement'. Raising skepticism about the money raised by the ed-tech firm, the lenders asked how Byju's could raise money all of a sudden when it couldn’t even pay salaries. Byju Raveendran has been asked by the National Company Law Appellate Tribunal, NCLAT, to submit an undertaking about the source of its funds.
Interestingly, the money is not being paid by the company founder, Byju Raveendran. As per Moneycontrol, Raveendran’s younger brother Riju Raveendran, who is also the largest shareholder of the company, is paying it.
The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Think & Learn—once India's most valuable startup worth an estimated $22 billion.
The NCLT has suspended the board of Think & Learn Pvt Ltd as per the provisions of the IBC and appointed an interim resolution professional (IRP) to take care of the debt-ridden firm.
Byju, at the time of admission of the BCCI plea by NCLT, had said it was hopeful of reaching "an amicable settlement" with the BCCI.
"As we have always maintained, we wish to reach an amicable settlement with BCCI, and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company's interests," a Byju's spokesperson said on July 16.
Raveendran challenged the NCLT order before the NCLAT. He has also approached the Karnataka High Court. At the high court, Raveendran challenged the validity of the order and sought the suspension of the NCLT order till the NCLAT hears the appeal.
(With inputs from PTI)