BCCI takes Byju's to NCLT for non-payment of Sponsorship Fees of Rs.160 Crs:

BCCI takes Byju's to NCLT for non-payment of Sponsorship Fees of Rs.160 Crs The Board for Control of Cricket in India (BCCI) has taken struggling edtech business Byju's to the National business Law Tribunal (NCLT) for failing to pay Rs. 160 crore in sponsorship money after the contract expired. While the payment has been overdue for more than six months, Byju's is attempting to clear it. "We are in talks with the BCCI to resolve the matter, and we hope to do so soon," a business spokeswoman stated. The disagreement concerns the sponsorship contract, which expired in March 2022. Byju's had paid all payments up to this point. BCCI had asked the business, which had been the most valued startup at the time, to continue until it found a new sponsor. Byju's intended to leave during a financial freeze, but BCCI convinced it to stay a bit longer. So, according to an official report, Byju's renewed its jersey sponsorship arrangement with the board until November 2023 for an estimated $35 million in June. While Byju's planned to end its contract with the BCCI in December, the board wanted it to last at least until March 2023, so that a new sponsor could be found in the following financial year. According to reports, the disagreement is about a payment of Rs. 160 crore for this time. As an operating creditor, bankruptcy experts believe BCCI's dues would take precedence above employee payments. However, it is understood that Byju's has conveyed to BCCI that it want to settle the dispute peacefully. The corporation has been in financial problems for some months as a result of a succession of high-profile acquisitions and a lack of new finance. It wishes to divest some of the businesses it has bought. To minimise expenses, it has fired off nearly 5,000 staff since October 2022. After more than a year of delay, its FY22 financial reports indicated Rs. 2,253 crore in EBITDA losses.