Alleging a default in the payment of ₹158 crores, the Board of Control for Cricket in India (BCCI) has filed a corporate bankruptcy plea against EdTech firm Byju's.
The argument, which was brought before the National Company Law Tribunal (NCLT) in Bengaluru, claimed that Byju's had not complied with its financial responsibilities as stipulated in a sponsorship agreement for the Indian cricket team.
On November 28, in response to the BCCI's application, judicial member K Bishwal and technical member Manoj Kumar Dubey of the NCLT requested a response from Byju's. On January 6, 2023, Byju's allegedly received a notification about the payment of ₹158 crores, except TDS (tax deducted at source).
Byju's received a notice from the NCLT directing it to submit a response within a period of two weeks. The next hearing in this case is set on December 22.
Sources claim that the unpaid sum has to do with a sponsorship agreement for the Indian cricket team's uniforms.
In 2019, the BCCI and Byju's partnership was first formed, with Byju's assuming shirt sponsorship from OPPO. The agreement was supposed to expire in 2022, but it was purportedly extended until 2023.
The EdTech company declared earlier this year that it will not be renewing its sponsorship agreements with the BCCI, the International Cricket Council (ICC), and the Federation internationale de football association (FIFA) due to financial difficulties that were revealed by Byju's.
Byju's declared in January of this year that it would not be extending its sponsorship agreement with BCCI and other partnerships with the International Cricket Council (ICC) and Fédération Internationale de Football Association (FIFA) during rumors of the EdTech company's other financial difficulties.
According to more recent reports, Byju's is negotiating a settlement for the insolvency case before the NCLT with the BCCI.
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