Including that each authorized roadblock has lengthened the corporate’s path to restoration, he mentioned that the ed-tech agency is on the verge of reversing the detrimental enterprise cycle.
Byju’s CEO explains why the corporate is unable to pay July wage
“I need to tackle the matter of utmost concern to you – and to me as properly. Your wage for July 2024 has not been credited but. Our firm lately confronted a critical problem that pushed us into insolvency resulting from a dispute with the BCCI. We settled the case and have been getting ready to regaining management of our funds after the NCLAT dominated in our favour.”
“The apex court docket has issued a brief keep on the NCLAT’s determination, which suggests the management of the corporate’s accounts has not but been restored to us,” Raveendran mentioned.
Within the letter, Raveendran mentioned “Founders are unable to infuse extra capital to pay salaries like we’ve all the time performed over the previous many months. I assure this: Once we regain management, your salaries can be paid promptly, even when which means elevating extra private debt. This is not only a promise – it is a dedication. We’ve buyers able to again our turnaround story,” Raveendran mentioned.
“I’m not a fugitive”: Raveendran
Raveendran refuted the allegation of Byju’s founders being “fugitives” as he has travelled to India 10 instances since March 2023 and spent 77 days in complete. “I’m not a fugitive,” he mentioned, emphasizing that his travels are for enterprise and household causes.
“Founders collectively have infused roughly Rs 7,500 crore within the firm for numerous operational wants. As a matter of reality, out of the Rs 3,976 crore disbursed as salaries to the group over the previous two years, Rs 1,600 crore was infused by Riju personally.
“When was the final time you noticed founders utilizing their financial savings, even borrowings, to pay salaries for his or her beloved group members for greater than two years?” Raveendran mentioned.
“ED has not commenced any investigation towards Riju or me in any private capability both,” he mentioned.
SC put aside insolvency proceedings towards Byju’s
For these unaware, the Nationwide Firm Legislation Appellate Tribunal (NCLAT) on August 2 accepted the Rs 158.9 crore dues settlement with Board of Management for Cricket in India (BCCI) and put aside insolvency proceedings towards Byju’s. Days later, the Supreme Courtroom on August 14 stayed the decision of the insolvency appellate tribunal towards the ed-tech main primarily based on a plea of US-based creditor Glas Belief Firm LLC.
Whereas international lenders allege that Byju’s has used the cash it raised from them within the US in violation of the contract, Byju’s had contested the declare. The corporate says that the fund raised via Time period Mortgage B (TLB) within the US was not used for BCCI settlement.
“My brother, Riju, has taken full monetary accountability for settling Rs 158 crore with the BCCI. The funds used to discharge this obligation have been sourced completely from his funds, which have been collected via the sale of his shares in Byju’s between Could 2015 and January 2022. These gross sales have been completely documented, and the related revenue taxes have been paid because the legislation requires,” Raveendran mentioned within the letter.
He mentioned the BCCI settlement was accomplished in full compliance with all authorized necessities. “We’ve submitted it beneath oath to the court docket. It clearly states that of the Rs 3,600 crore he earned from secondary share gross sales, roughly Rs 2,600 crore have been reinvested into Byju’s to maintain the corporate’s operations, and Rs 1,050 crore have been paid as revenue tax,” Raveendran famous.
