Byju’s at the Brink: Creditors Seize Control of ₹158 Crore BCCI Settlement Drama

India's edtech leader Byju's has a new obstacle to deal with as the National Company Law Appellate Tribunal (NCLAT) ordered that the final decision for the ₹158 crore settlement to the Board of Control for Cricket in India (BCCI) lies with its creditors. Byju's deposited the settlement value in escrow following a sponsorship payment dispute prior to its formation of the Committee of Creditors (CoC).

 

But NCLAT upheld that after admitting insolvency proceedings, all settlements have to be examined by the CoC. Large creditors such as US-based Glas Trust and Indian lenders like Aditya Birla Finance have questioned the source and authenticity of the funds. The tribunal's ruling gives the CoC the power to approve or reject the settlement, not Byju's or BCCI.

 

If the CoC approves, Byju's may come out of insolvency proceedings; otherwise, the financial uncertainty worsens. The NCLT has been asked to fast-track its hearing, and the case will set a precedent for creditor rights under Indian insolvency law.

 

Source: Business Today, Business Standard, Hindustan Times