NCLT nod for Byju’s Rs 158-cr settlement with BCCI

New Delhi: In a major relief to Byju’s, the NCLAT on Friday set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a Rs158-crore settlement with the Board of Control for Cricket in India (BCCI).

The National Company Law Appellate Tribunal (NCLAT), however, passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju’s. The appellate tribunal also dismissed the allegation of round-tripping levelled by Byju’s US-based lenders, saying they failed to provide any evidence for the same. The tribunal further said the money was paid by Riju Raveendran (brother of Byju Raveendran) through sales of his shares.

“In view of the undertaking given and affidavit, the settlement between the parties (is) approved and as a result appeal succeeds and impugned order (passed by the NCLT) is set aside,” said a two-member Chennai bench in its order in the open court.

As per the undertaking, Riju Ravindran has made a payment of Rs50 crore on July 31 against the outstanding dues owed by Byju’s to BCCI.