Byju's Staff Miss July Pay As Company Struggles With Account Access: Raveendran

On August 2, the National Company Law Appellate Tribunal (NCLAT) approved a Rs 158.9 crore settlement with the BCCI and dismissed insolvency proceedings against Byju's

Raveendran stated that the settlement with the BCCI was executed in full adherence to all legal requirements

Source : Byju's

Edtech firm Think and Learn, which operates under the Byju's brand, has not paid July salaries to its employees due to complications arising from a Supreme Court stay on the NCLAT's decision, a senior official revealed on Tuesday, according to a PTI report.

On August 2, the National Company Law Appellate Tribunal (NCLAT) approved a Rs 158.9 crore settlement with the BCCI and dismissed insolvency proceedings against Byju's. However, on August 14, the Supreme Court issued a stay on the NCLAT's ruling, following a petition by the US-based creditor Glas Trust Company LLC. This stay has temporarily prevented the company from accessing its accounts.

In an email to employees, Byju Raveendran, founder and CEO of Think and Learn, acknowledged the ongoing legal challenges and their impact on the company's recovery efforts. Raveendran assured employees that despite these setbacks, the company is nearing the end of a difficult period and is working towards reversing the negative business cycle that has persisted for the past two years.

"I want to address the matter of utmost concern to you - and to me as well. Your salary for July 2024 has not been credited yet. Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour. The apex court has issued a temporary stay on the NCLAT's decision, which means the control of the company's accounts has not yet been restored to us," Raveendran said, reported PTI.

He noted that certain international creditors have been pursuing legal action against the company and have challenged the NCLAT ruling in the apex Court.

"Founders are unable to infuse more capital to pay salaries like we have always done over the past many months. I guarantee this: When we regain control, your salaries will be paid promptly, even if that means raising more personal debt. This isn't just a promise - it's a commitment. We have investors ready to back our turnaround story," Raveendran said.

Foreign lenders have accused Byju's of misusing funds raised from them in the US, alleging breaches of contract. Byju's has disputed these claims, asserting that the capital acquired through the Term Loan B (TLB) in the US was not allocated for the settlement with the Board of Control for Cricket in India (BCCI).

"My brother, Riju, has taken full financial responsibility for settling Rs 158 crore with the BCCI. The funds used to discharge this obligation were sourced entirely from his finances, which were accumulated through the sale of his shares in Byju's between May 2015 and January 2022. These sales have been thoroughly documented, and the relevant income taxes have been paid as the law requires," Raveendran added.

He stated that the settlement with the BCCI was executed in full adherence to all legal requirements.

"We have submitted it under oath to the court. It clearly states that of the Rs 3,600 crore he earned from secondary share sales, approximately Rs 2,600 crore were reinvested into Byju's to sustain the company's operations, and Rs 1,050 crore were paid as income tax," Raveendran noted.