Byju’s faces salary woes as NCLT delays hearing: Report

As the National Company Law Tribunal extends its hearing on Byju’s ongoing dispute with investors, the educational technology giant faces mounting challenges, with reports suggesting that employee salaries for February and March remain partially unsettled. This development places around 14,000 employees in a state of uncertainty regarding their financial future.

Byju’s, headquartered in Bengaluru, has encountered obstacles in accessing funds from its rights issue due to the protracted legal battle, exacerbating its existing liquidity crunch. With the NCLT deferring the next hearing to June 6, it implies that Byju’s will likely grapple with insufficient financial means until a resolution is reached.

Sources within the company revealed to Times of India that Byju Raveendran, the founder and CEO, has resorted to personal debt to meet salary obligations. However, the sustainability of this approach raises concerns among company insiders.

In an interim order issued on February 27, the NCLT instructed Byju’s to retain the funds amassed from its $200 million rights issue in a segregated escrow account. Furthermore, the tribunal prohibited the withdrawal of these funds until the conclusion of the oppression and mismanagement lawsuit against the company's management.