BCCI had approached NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Byju's, once India's most valuable startup worth USD 22 billion.
NCLAT, the insolvency appellate tribunal, has deferred its decision on the settlement between Byju's and BCCI after its US-based creditor alleged 'round-tripping' of the money by the edtech firm's founder. The Chennai bench of NCLAT has asked the now-suspended promoters of Byju's to furnish an undertaking by Thursday, that over Rs 158 crore to be paid by Riju Raveendran (brother of Byju's founder Byju Raveendran) is not tainted and not against the order passed by a US-based court.
Meanwhile, National Company Law Appellate Tribunal (NCLAT) has also directed the interim resolution professional (IRP) of Think and Learn Pvt Ltd, which owns Byju's, not to constitute Committee of Creditors (CoC) till August 1, the next date of hearing.
During the proceedings, lawyers appearing for Byju's handed over a draft memorandum of settlement between Byju's and BCCI. According to the terms and conditions, the money will be paid in two instalments of Rs 50 crore each and the rest in the third instalment. One tranche has already been paid on Tuesday. The payment is being done by Riju, who is also one of the largest shareholders in the company.
However, senior advocate Mukul Rohatgi, who was appearing as an intervener in this matter for US-based creditor Gas Trust LLC, which is claiming default of Rs 8,000 crore loans, alleged that this money is from 'round tripping'.
He asked NCLAT not to accept the settlement calling it "tainted money" which is stolen from his client. He also questioned how a company, which is not even able to pay salaries to its employees and whose coaching centres are getting closed, has now arranged the money.
"The source is tainted. How can the court allow settlement?," said Rohatgi, and asked "has it (money) come from an official account" of Byju's? Rohatgi further alleged that both Byju and Riju conspired and stole USD 500 million belonging to the US-based creditor.
Over the allegation of round-tripping, senior advocate Dhyan Chinnappa, appearing for the former promoters said the overseas fund is to fund overseas operations. "It cannot be brought to India," he said adding "Riju has raised this money to save the company." NCLAT was hearing a petition filed by Byju's, challenging the initiation of insolvency proceedings against Think & Learn.
(Except for the headline, this story has not been edited by DNA staff and is published from PTI)
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