The promoter of edtech firm Byju’s has told the National Company Law Appellate Tribunal (NCLAT) that it has raised Rs 159 crore through sale of shares to pay dues to the Board of Control for Cricket in India (BCCI). The National Company Law Appellate Tribunal (NCLAT) said it will continue hearing the plea challenging the insolvency proceedings against Byju’s and Think and Learn Pvt Ltd on Friday. It also directed the lender’s Interim Resolution Professional (IRP) not to form the Committee of Creditors (CoC) till August 2. Think and Learn Private Limited operates under the Byju’s brand.
There is an accusation of manipulation
The Chennai bench of the NCLAT on Wednesday indicted Byju’s founder for misappropriation of funds from the company’s US-based lender. The Appellate Court subsequently postponed its decision on the Byju’s-BCCI deal. Meanwhile, lawyers for Raveendran Byju and other suspended promoters of the company submitted an affidavit to the NCLAT on Thursday. In it, information was provided regarding the source of Rs 158.9 crore to be paid to BCCI.
The promoters rejected allegations of misappropriation and told the authority that the amount payable to BCCI was transferred to Think and Learn Pvt. Ltd. earlier this year. It has been raised from the sale of shares and the tax on it has been paid. The promoters’ counsel told the appellate court that if insolvency proceedings were initiated the company would be wound up. A two-member bench of the NCLAT said the arguments are still going on but the court’s time is up. It will re-list the matter in the post-lunch session tomorrow (Friday). The creditors’ meeting will not be constituted till tomorrow.
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The promoters will have to do this work.
The appellate court has also asked the promoters to complete their arguments tomorrow. It will then give its orders. During the proceedings, Hari, representing Riju Raveendran, brother of Byju’s founder Byju Raveendran and one of the largest shareholders in the company, filed an affidavit. The lawyer said Riju is currently in London.
The affidavit says that an agreement was reached with BCCI on July 30 for payment of Rs 158 crore. Of this, Rs 50 crore has already been paid and Rs 25 crore will be paid on August 2. The remaining Rs 83 crore will be paid by August 9. A post-dated cheque from ICICI Bank will be issued for this. US lender Gas Trust LLC alleged that this money was misappropriated. The US unit alleges default on loans of Rs 8,000 crore.
