Byju’s, the troubled edtech company, is facing ongoing difficulties, and its employees are bearing the brunt. The company failed to pay the July salary, adding to its recent history of delayed payments over the past few months. This time, CEO Byju Raveendran has openly admitted the situation, saying that the company’s bank accounts are currently out of their control, making it unlikely that salaries will be paid anytime soon.
Supreme Court Halts NCLAT’s Order
Recently, Byju’s suffered another setback. The National Company Law Appellate Tribunal (NCLAT) had approved a payment in the BCCI case, but the Supreme Court halted this decision in response to a petition by Glas Trust Company, causing further delays in salary payments. Byju’s parent company, Think and Learn, has not been able to pay the July salary. A senior company official stated on Tuesday that the Supreme Court’s stay on the NCLAT decision has led to the current salary crisis.
Email from Byju Raveendran to Employees
Byju Raveendran sent an email to employees explaining that legal challenges have prolonged the company’s recovery process, which has been ongoing for two years. He expressed concern for the employees, acknowledging that July salaries have not yet been paid. He explained that the company was pushed toward bankruptcy due to the dispute with BCCI. Although Byju’s was ready to make the payment, the Supreme Court’s temporary stay has left their bank accounts out of their control.
Inability to Raise Funds for Salaries
Raveendran admitted that the company is unable to raise additional funds to pay salaries. He assured employees that once they regain control of the bank accounts, salaries will be paid immediately, even stating that they are willing to take personal loans to cover the payments. He also mentioned that the BCCI payment of ₹158 crore was being personally funded by Riju Raveendran.