BCCI Takes Byju's to NCLT Over Unsettled 160 Crore Payments
The Board of Control for Cricket in India (BCCI) has taken edtech giant Byju's to the National Company Law Tribunal (NCLT) over an unpaid sponsorship amount of Rs 160 crore, stemming from a concluded contract.
Despite the outstanding dues, Byju's is engaged in discussions with BCCI to resolve the matter. A spokesperson for the company stated, "We are in talks with BCCI to settle this issue, aiming for a swift resolution."
The disagreement centers on a sponsorship agreement that ended in March 2022. Up until this point, all prior payments had been made by Byju's. However, BCCI requested the company to extend their agreement temporarily as they sought a new sponsor during a financial dry spell.
In June, Byju's prolonged its jersey sponsorship deal with BCCI until November 2023, estimated at $35 million. Although Byju's aimed to conclude its commitment in December, BCCI preferred an extension until March 2023 to attract a new sponsor for the new financial year.
The dispute revolves around a Rs.160 crore payment for this period. Despite being an operational creditor with obligations to its employees, BCCI's dues might not hold primary precedence, per insolvency experts' advice. Nonetheless, Byju's has reportedly expressed interest in an amicable settlement with BCCI.
Facing financial strains due to extensive acquisitions and insufficient fresh funding, Byju's has been navigating a challenging period. To streamline costs, the company has downsized its workforce by more than 5,000 employees since October 2022.
Follow us on Instagram.