BCCI Complains Against Byju's Unpaid Sponsorship Dues, Law Tribunal Set To Hear Insolvency Proceedings Against Ed-Tech Giant

The Bengaluru bench of the National Company Law Tribunal (NCLT) has decided to hear a plea from the Board of Control for Cricket in India (BCCI) requesting insolvency proceedings against the ed-tech giant Byju's.

The BCCI, which oversees professional cricket in India, has made this plea over alleged unpaid dues worth Rs 158 crore related to their sponsorship contract for the Indian cricket team, as per a report by The Indian Express.

Earlier, BCCI had filed a petition with the Bengaluru bench of the NCLT against Think & Learn Pvt Ltd, Byju’s parent company, citing a default on dues close to Rs 160 crore. This issue concerned a dispute over the sponsorship rights for the Indian cricket team’s jerseys.

The bankruptcy tribunal has officially registered the case for further hearing on 15 November. At that time, Byju’s stated it was in discussions with the BCCI to resolve the pending insolvency matter filed in the Bengaluru NCLT.

According to the NCLT order delivered on 28 November 2023, a general notice was issued to Byju’s via email on 6 January 2023, indicating the default amount of Rs 158 crore, excluding tax deducted at source (TDS), as shown in the attached invoices.

Previously, Byju’s had significant branding partnerships with the BCCI, International Cricket Council (ICC), and Federation Internationale de Football Association (FIFA), all of which were up for renewal in 2023 but were not processed.

In July 2023, the Ministry of Corporate Affairs (MCA) instructed the Regional Director’s office in Hyderabad to inspect Think & Learn Pvt Ltd, registered in Bengaluru.

In June, the MCA announced that proceedings against Byju’s under the Companies Act were ongoing and no conclusions had been reached. The ministry clarified that reports claiming Byju’s had been cleared of financial fraud in the ongoing investigation were incorrect and misleading.