The Board of Control for Cricket in India (BCCI) has filed the application under Section 9 of the Insolvency and Bankruptcy Cose, 2016 (IBC) against Byju’s before the Bengaluru bench of the National Company Law Tribunal (NCLT) as a part of default on the side of Byju’s to pay the sponsorship dues.
The case was initially filed on 8th September 2023 and was registered on November 15. The Byju’s had asked the board to encash ₹140 crore bank guarantee, while the remaining ₹160 crore was to be paid in instalments.
After OPPO’s contract termination, Byju’s became Team India’s official jersey partner, extending the partnership for 18 months without a written agreement and Byju’s withdrew from the contract midway with payments made to BCCI until September 2022. Byju’s had announced non-renewal of branding partnerships for profitability reasons and financial challenges, a few months before Dream11 became Team India’s jersey sponsor at INR 358 crore for three years.
Significant delays in releasing financial statements prompted auditor Deloitte to resign, and three key board members also departed during the said period. The Enforcement Directorate issued a show cause notice to Byju’s for violating anti-money laundering regulations.
Think & Learn, the parent company of Byju’s, experienced a 6% decrease in operating losses amounting to Rs 2,400 crore for its primary online education business, while revenue surged by over double, reaching Rs 3,550 crore for the fiscal year ending on March 31, 2022.
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