Byju's reaches settlement with BCCI, Riju Raveendran to pay the dues: Report
Bengaluru: Byju's founder, Byju Raveendran, and the Board of Control for Cricket in India (BCCI) have settled their dispute over outstanding payments, media reports said.
The founder's lawyer informed the National Company Law Appellate Tribunal (NCLAT) that a portion of the settlement amount was paid on Tuesday, according to an Economic Times report.
The payment will be made by Byju's board member and Raveendran's brother, Riju Raveendran, according to Arun Kathpalia, the founder's representative, the report said.
According to the Economic Times report, Riju Raveendran will pay Rs 158 crore to BCCI to settle the dues.
However, Glas Trust Company LLC, representing a group of US lenders to Byju's, opposed the settlement, claiming the funds belong to them.
The lenders had previously provided a $1.2 billion loan to Byju's US subsidiary, Alpha Inc, under a guarantee agreement.
The tribunal has requested the founder's counsel to submit an underwriting that specifies the source of the funds being paid to the BCCI, with a hearing scheduled for Thursday.
Raveendran’s counsel stated on Tuesday that the settlement amount would be paid in three installments over the next ten days, said the ET report.
The NCLAT is currently reviewing an appeal against the insolvency proceedings initiated by the National Company Law Tribunal (NCLT) against Think and Learn, the parent company of Byju’s, on July 16.
The NCLT order protects Byju's assets from creditors and prohibits the transfer or sale of these assets.
Byju’s had signed a jersey sponsorship agreement with the BCCI in March 2019 for three years, which was later extended by a year.
The company made payments until September 2022, with the dispute covering the period from October 2022 to March 2023. The BCCI filed an insolvency petition against the edtech firm in September of the previous year.
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