BENGALURU — In a move that could intensify one of India’s most closely watched corporate battles, Byju’s has filed an FIR accusing senior partners at Ernst & Young and members of a resolution team of conspiring against the company. The complaint, made public via a social media post by founder Byju Raveendran, names resolution professionals Pankaj Srivastava and Dinkar Venkatasubramanian of EY, as well as Rahul Agarwal and Lokesh Gupta, among others, including GLAS Trust Company LLC—the administrative and collateral agent representing a consortium of global lenders.
The FIR is rooted in events that followed a $1.2 billion term loan granted in 2021 to Byju’s US-based subsidiary, Alpha Inc., intended to fuel international expansion. However, allegations emerged from GLAS Trust that over $500 million had been fraudulently diverted to a U.S. hedge fund, triggering a cascade of legal and financial consequences.
Insolvency Proceedings and NCLT Reversals
The fallout from the loan dispute led GLAS Trust to initiate insolvency proceedings under India’s Insolvency and Bankruptcy Code, citing violations of loan covenants. The National Company Law Tribunal (NCLT) initially constituted a Committee of Creditors (CoC) that included GLAS Trust and Aditya Birla Finance. However, resolution professionals subsequently restructured the CoC, removing both financial giants—an action contested vigorously in court.
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In a January 2025 ruling, the NCLT reinstated the original creditors, accusing the resolution professional of misconduct and imposing disciplinary actions. This legal reversal marked a significant victory for the lenders, strengthening their hold over the proceedings involving the edtech company’s restructuring.
Cricket Sponsorship Settlement Under Scrutiny
Adding another twist, Byju’s attempted to settle a ₹158 crore debt with the Board of Control for Cricket in India (BCCI), using funds that GLAS Trust contended belonged to its lending consortium. The trust challenged the transaction, leading to a Supreme Court ruling in October 2024 that nullified the deal, citing a lack of procedural transparency.
The court further directed that the disputed funds be returned and deposited with the CoC managing the company’s insolvency. The ruling underscored judicial concerns over corporate governance and the handling of financial obligations during restructuring.