Byju's Raveendran on the brink of losing control Amid BCCI Insolvency Case
The National Company Law Tribunal (NCLT) has appointed an interim resolution professional to take over Byju's operations, replacing founder Byju Raveendran. This decision follows a petition from the BCCI a former sponsor of Byju's, and has led to other creditors, employees, and vendors filing claims against the company.
LD Web Desk 
Byju's Raveendran is indeed on the brink of losing control over his company, Byju's. A recent ruling by the National Company Law Tribunal (NCLT) has initiated bankruptcy proceedings against the company, appointing an interim resolution professional to take over operations.
This development follows a plea from one of the company's creditors, the Board of Control for Cricket in India (BCCI), highlighting significant financial troubles and debt defaults (Deccan Chronicle) (Hindustan Times).
Additionally, more than 60% of Byju's shareholders recently voted to remove Raveendran from his position as CEO, citing alleged mismanagement and failures within the company. However, Byju's has called this vote invalid, leading to further legal and operational turmoil.
Byju's, the $22 billion online education business founded in 2015, quickly rose to prominence, especially during the COVID-19 pandemic, when online education saw a massive surge. This boom allowed founder Byju Raveendran to expand the company internationally and become a billionaire.
However, as the pandemic waned and traditional classes resumed, the company's financial reserves dwindled. This, coupled with mounting legal issues in both India and the US, has severely impacted Byju's operational stability.
One of the many bankruptcy lawsuits Byju's is facing, both domestically and internationally, is from the Board of Control for Cricket in India (BCCI). Byju's, previously a sponsor of the national cricket team, allegedly owes BCCI 1.59 billion rupees (approximately $19.4 million). The business court, in its ruling, affirmed the existence of a debt and a default on Byju's part, with no grounds for dismissing BCCI's appeal.
Byju's has the option to appeal the ruling, which could potentially halt the insolvency proceedings if it secures a stay order. In the meantime, insolvency professionals have outlined the expected steps forward: the appointed caretaker will contact Byju's suppliers and creditors to establish a committee of creditors. This committee may include holders of a $1.2 billion term loan that Byju's US branch defaulted on, which led to the bankruptcy of its US operations.
Byju's has expressed confidence in reaching a settlement with the BCCI, stating its commitment to resolving the issue. A spokesperson for Byju's mentioned that their legal team is reviewing the court order and will take necessary steps to protect the company's interests.
