NCLT Orders Byju’s to Pay Salaries or Undergo Audit: ‘Your Company Should Have Revenues’

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The National Company Law Tribunal (NCLT) has directed the embattled edtech company Byju’s to ensure salary payments to its employees, irrespective of its fundraising status through a rights issue. The tribunal warned that failure to pay employees could result in an audit by the Institute of Chartered Accountants of India.

NCLT Orders Byju’s to Pay Salaries or Face Audit
NCLT Orders Byju’s to Pay Salaries or Face Audit

The National Company Law Tribunal (NCLT) has directed the embattled edtech company Byju’s to ensure salary payments to its employees, irrespective of its fundraising status through a rights issue. The tribunal warned that failure to pay employees could result in an audit by the Institute of Chartered Accountants of India.

During a hearing by the Bengaluru bench of NCLT, employees sought intervention for the payment of overdue salaries. The tribunal emphasized, “You are a company that is functioning. Surely you should be having revenues.” Byju’s was ordered to file a response to the employees’ application, with the plea scheduled for a hearing next week.

Byju’s disclosed that salaries for April and May have been paid, but February and March salaries are still pending. The company explained that funds raised through a rights issue in February are currently held in an escrow account by order of the NCLT, preventing their use until the case is resolved. Additionally, at least seven vendors have sued Byju’s at NCLT to recover their dues.

The plea will be heard by a division bench of the high court on July 5, with the NCLT scheduled to rehear the plea for a stay on the company’s second rights issue on July 9.

Sources By Agencies

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281 thoughts on “NCLT Orders Byju’s to Pay Salaries or Undergo Audit: ‘Your Company Should Have Revenues’

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