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Byju`s Employees Haven`t Received July Salaries Yet, CEO Explains Why
In an email to employees, Byju Raveendran expressed that each legal hurdle has prolonged the company`s journey toward recovery.
New Delhi: Employees at Edtech firm Think and Learn, the company behind Byju's have not received their July salaries. According to CEO Byju Raveendran, the delay occurred because the company was temporarily unable to access its accounts due to a Supreme Court stay on a recent decision by the National Company Law Appellate Tribunal (NCLAT).
The National Company Law Appellate Tribunal (NCLAT) on August 2 approved Byju’s settlement of Rs 158.9 crore in dues with the BCCI and dismissed the insolvency proceedings against the company. On August 14, the Supreme Court put a hold on this decision, followed by a plea from US-based creditor Glas Trust Company LLC, effectively reinstating the insolvency case against the ed-tech giant.
In an email to employees, Byju Raveendran expressed that each legal hurdle has prolonged the company’s journey toward recovery and stated, “I want to address the matter of utmost concern to you - and to me as well. Your salary for July 2024 has not been credited yet."
He further added, "Our company recently faced a serious challenge that pushed us into insolvency due to a dispute with the BCCI. We settled the case and were on the brink of regaining control of our finances after the NCLAT ruled in our favour. The apex court has issued a temporary stay on the NCLAT's decision, which means the control of the company's accounts has not yet been restored to us."
He mentioned that some foreign lenders have been challenging the company in court and have appealed the NCLAT ruling to the Supreme Court.