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Byju's to face audit unless salaries are paid, says NCLT
A Bengaluru bench said on Thursday, “You are a company that is functioning. Surely you should be having revenues," upon hearing the pleas of unpaid employees.
The ongoing legal battle began last year when the NCLT Bengaluru admitted an insolvency petition filed by the BCCI against Think & Learn Private Limited over unpaid dues.
Byju’s has been warned of an audit by the National Company Law Tribunal (NCLT) unless it pays salaries to its employees irrespective of the edtech company having access to the funds raised through its rights issue.
A Bengaluru bench said on Thursday, “You are a company that is functioning. Surely you should be having revenues," upon hearing the pleas of unpaid employees.
The NCLT said that an audit would be carried out by the Institute of Chartered Accountants of India (ICAI) if the detect company fails to pay salaries.
The tribunal has asked Byju’s to file a reply and the plea has been listed to be heard in the coming week.
As per Moneycontrol, Byju’s paid salaries for the months of April and May. However, the company is yet to pay its employees for February and March.
The company said that it doesn’t have access to the funds it raised through the rights issue in February and thus, has been late on the payment of salaries. The funds from the rights issue are locked in an escrow account upon the NCLT’s orders till the disposal of the case. Additionally, around seven vendors have also sued Byju's at the NCLT to receive their unpaid moneys.
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