Published on: December 04, 2023 at 15:59 IST
The Board of Control for Cricket in India (BCCI) has taken legal action by filing a corporate insolvency plea against EdTech giant Byju’s, alleging a default in the payment of ₹158 crores.
The plea was submitted to the National Company Law Tribunal (NCLT) in Bengaluru, asserting that Byju’s failed to fulfill its financial obligations under a sponsorship contract for the Indian cricket team.
The judicial member K Bishwal and technical member Manoj Kumar Dubey of the NCLT sought a response from Byju’s on November 28, following the BCCI’s application. Byju’s reportedly received a notice on January 6, 2023, regarding the payment of ₹158 crores, excluding TDS (tax deducted at source).
The NCLT issued a notice to Byju’s, instructing the company to file its reply within two weeks. The case is scheduled for the next hearing on December 22.
According to sources, the outstanding amount is related to a sponsorship contract for the jerseys of the Indian cricket team.
The agreement between BCCI and Byju’s was initially established in 2019, with Byju’s taking over jersey sponsorship from OPPO. While the contract was set to conclude in 2022, it was reportedly extended for the year 2023.
Earlier this year, amidst financial challenges reported by Byju’s, the EdTech company announced its decision not to renew sponsorship deals with BCCI, as well as partnerships with the International Cricket Council (ICC) and Fédération internationale de football association (FIFA).
Recent reports suggest ongoing discussions between Byju’s and BCCI to explore potential resolutions and settle the insolvency case before the NCLT. The matter is expected to unfold further in the coming weeks.