BCCI Files Petition in NCLT Against Byjus over 160 crore 'dues'

The cash-strapped edtech firm Byju”s, which is grappling with legal battles with lenders, has hit with another controversy as the Board for Control of Cricket in India (BCCI) filed a lawsuit in the National Company Law Tribunal (NCLT) against them. BCCI is demanding Rs. 160 crore in sponsorship money, which is due for more than six months.

Byju”s, however, clarified that they are holding talks with the BCCI to settle the issue, and an amicable settlement is expected soon.

It all started when Byju”s was forced to resume the Indian cricket team”s jersey sponsorship despite ending their tenure in March. Byju”s has made all the payments up until then. However, the company was asked to resume the sponsorship until the BCCI found a new one. Following the request, Byju”s agreed to extend their sponsorship until November 2023 for an estimated $35 million.

In December, the Byju”s was again urged to extend the sponsorship until March 2023, as BCCI expected to appoint a new sponsor in the new fiscal. The concerned amount of Rs. 160 crore belongs to this period. In the wake of the liquidity crunch, Byju”s preferred to spend on day-to-day operations rather than pay an operational consultant. This made the Byju”s indebted to the BCCI.

Still, Byju”s has stepped up the deliberations for an amicable solution.

Byju”s has been facing serious financial problems after making large acquisitions despite lacking adequate funding. There are reports that the edtech firm is trying to sell some of its subsidiaries in order to overcome the difficulties. The firm has laid off over 5000 employees since October as part of cost-cutting measures.

Meanwhile, the company published the delayed financial results for FY22, with Rs 2,253 crore in EBITDA losses.