In a recent development The Board of Control for Cricket in India (BCCI) has initiated insolvency proceedings under section 9 of the Insolvency and Bankruptcy Code 2016 against Byju’s for defaulting on sponsorship dues worth Rs 150 crore. This development comes months after Byju’s announced that it would not renew its branding partnerships, citing a cost-cutting strategy to achieve profitability.
This development also follows fresh troubles for Byju’s as the Enforcement Directorate (ED) confirmed sending a show cause notice to edtech company Think and Learn Private Limited and Byju Raveendran in the FEMA violation case. BYJU’S is involved in lawsuits with lenders over a $1.2 billion loan. The company missed an interest payment of $40 million on a loan taken in November 2021. US-based investors have also accused BYJU’S of hiding half a billion dollars.
The matter is scheduled to be listed on 22nd December 2022.
