You Have Rs 15,000 Crore Due Why Only Settle BCCI's': Supreme Court Asks Byju's (Image: Byju's)

The Supreme Court on Thursday, criticised ed-tech major Byju’s decision to settle its Rs 158.9 crore debt with the Board of Control for Cricket in India (BCCI) while owing Rs 15,000 crore to various creditors. It was said that Byju’s settled the debt using Riju Raveendran’s, brother of Byju Raveendran’s, personal assets.

However, the Supreme Court wonders why Byju’s prioritised the BCCI settlement over other creditors questioning the fairness of this move. The Supreme Court has questioned why crisis-hit ed-tech major Byju’s chose to settle its dues only with the BCCI despite being in Rs 15,000 crore debt.

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“The insolvency appellate tribunal NCLAT did not apply its mind while closing insolvency proceedings against the firm, you have Rs 15,000 crore due why only settle BCCI’ the court asked Byju. The court also expressed concerns over the National Company Law Appellate Tribunal (NCLAT) approving the settlement without thoroughly examining the case.

Since US-based creditor Glas Trust Company LLC claims the settlement money may be “tainted,” Byju defaulted on its Rs 158.9 crore sponsorship fee to the BCCI in 2022 contributing to its total debt of Rs 15,000 crore. This amount has been put on stay by the court on behalf of Byju setting the insolvency proceedings initiated by BCCI in August 2024.

Later, the Supreme Court ordered the BCCI to deposit the settlement amount in a separate account. The case will resume today (September 26) with Glas Trust Company LLC arguing that the NCLAT should not have stopped insolvency proceedings. On the contrary, Byju’s advocates claim the settlement was from personal assets while the BCCI stated that it received the settlement from legitimate sources.

Earlier this month, the ed-tech app Byju’s founder Byju Ravindran’s brother Riju Ravindran has been ordered to pay $10000 (Rs 8,00000) per day until he finds $533 million that the company is accused of concealing from the US lenders. It was said that the tussle began in 2022 and made way for disputes over the missing cash. A judge stated that Riju Ravindran has to pay $10,000 every day until he assists in locating the missing amount given by the US lenders.

Also, read| Supreme Court Stays Byjus’s Whopping Rs 158.9 Crore Settlement With BCCI