Byju’s faces a setback as the NCLAT grants creditors control over the ₹158 crore settlement with BCCI. This decision sidelines the company’s promoters, intensifying the financial strain on the embattled edtech giant.
Byju’s, the Indian edtech giant, suffered a significant blow as the National Company Law Appellate Tribunal (NCLAT) granted creditors full authority over a ₹158 crore settlement with the Board of Control for Cricket in India (BCCI). The decision effectively sidelined the company’s promoters, Riju Raveendran and Byju Raveendran, leaving creditors to decide the fate of the payment intended to resolve Byju’s insolvency issues.
The ruling stems from a plea filed by Riju Raveendran, the suspended director of Byju’s, who sought to prevent creditors from having the final say in the settlement. The NCLAT upheld the Bengaluru bench of the National Company Law Tribunal (NCLT) order from February 10, 2025, which directed that the settlement proposal be placed before the Committee of Creditors (CoC) for approval.
Byju’s, founded in 2011 by Byju Raveendran and Divya Gokulnath, grew rapidly to become India’s most valuable edtech startup. However, its expansion plans have led to severe financial strain, ultimately resulting in insolvency proceedings triggered by a failure to pay ₹158 crore to the BCCI under a jersey sponsorship agreement.
Under the current insolvency proceedings, the CoC, which is largely dominated by creditors such as Glas Trust LLC and Aditya Birla Finance, now holds the power to accept or reject the settlement. Glas Trust, which holds 99.41% of the voting shares, is staunchly opposing the settlement, arguing that the funds should first be used to pay off Byju’s creditors instead of clearing BCCI’s dues.
This ruling places a major roadblock in Byju’s efforts to exit insolvency. If the settlement is not approved, Byju’s promoters may be left with little recourse, though they retain the option to appeal to the Supreme Court. The company has already faced a series of setbacks, including an earlier challenge in the Supreme Court, which overturned an NCLAT order, reinforcing the creditors’ position in the settlement process.
With the NCLAT’s latest decision, Byju’s future hangs in the balance, and its efforts to resolve its financial woes seem even more complicated. The creditors now have the final say on how to handle the ₹158 crore settlement and the company’s exit from insolvency.
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