Riju Raveendran, the largest shareholder of edtech company Byju’s and brother of founder Byju Raveendran, approached the insolvency tribunal on Monday, seeking to be included in the insolvency case deliberations involving the troubled firm, its lenders and the cricket board.
Riju Raveendran’s counsel urged the tribunal to allow him to present his defence against allegations made by Byju’s lenders, particularly Glas Trust, regarding the source of the ₹158 crore he raised to settle the dispute between Byju and the Board of Control for Cricket in India (BCCI).
The lenders had alleged that the ₹158 crore used to settle dues with the BCCI were sourced through round-tripping and were “tainted”.
However, the NCLT bench in Bengaluru expressed reservations about accepting Raveendran’s plea, stating that determining the source of funds lies within the jurisdiction of income tax authorities and the Enforcement Directorate (ED), not the insolvency court.
The tribunal directed Byju’s lenders to file objections to Raveendran’s plea and adjourned the hearing.
Riju Raveendran had claimed that the settlement funds were personally raised through the sale of shares in Byju’s parent company, Think & Learn Pvt. Ltd., between May 2015 and January 2022.
However, the lenders alleged that the funds used for the BCCI settlement were part of a round-tripping scheme involving unaccounted money. They argued that the settlement was tainted as it involved stolen money and questioned how Riju Raveendran could pay ₹158 crore when the Byju brothers allegedly misappropriated around ₹8,000 crore.
The insolvency tribunal is hearing multiple pleas in the Byju’s insolvency case, including a settlement plea filed by the BCCI. The cricket board seeks to withdraw its insolvency case against Byju’s after receiving ₹158 crore as a settlement.
This is the second settlement attempt between Byju’s and the BCCI.
In October, the Supreme Court quashed an earlier agreement on a plea by Glas Trust. The court overturned the National Company Law Appellate Tribunal (NCLAT)’s approval of the settlement and reinstated the insolvency proceedings.
The Supreme Court also mandated that the ₹158 crore settlement amount be deposited into an escrow account overseen by the Committee of Creditors (CoC).
It directed the BCCI and Byju’s to file fresh settlement pleas with the NCLT under the process prescribed by the Insolvency and Bankruptcy Code (IBC).
The BCCI, an operational creditor of Byju’s, initiated insolvency proceedings after the edtech firm defaulted on payments under a 2019 sponsorship agreement. The deal, which included Byju’s branding on the Indian cricket team’s jerseys, was extended until November 2023.
However, Byju’s failed to fulfill its financial obligations, prompting the BCCI to attempt encashing a ₹140 crore bank guarantee and filing an insolvency petition with the NCLT, which admitted the case on 16 June.
In August, the NCLAT temporarily dismissed insolvency proceedings after Raveendran raised funds to repay the BCCI, restoring Byju Raveendran’s control. However, the Supreme Court later overturned this decision.
Byju’s, once India’s leading edtech unicorn, now faces severe financial strain, lawsuits, and regulatory scrutiny. Founded in 2011, the company is under pressure to repay a $1.2 billion loan while key investors demand greater financial transparency. At its peak in 2021, Byju’s reported ₹10,000 crore in revenue and employed over 85,000 people.
Source: Mint