Employee claims against Byju’s top Rs 300 crore in ongoing insolvency case | Company News
The total claims made by current and former employees against Think and Learn, the parent company of the embattled edtech firm Byju’s, have surpassed Rs 300 crore, according to a report by the Financial Express.
The claims filed with the resolution professional, Pankaj Srivastava, are validated based on the documentation provided. However, these claims still need to be reconciled with the complete and accurate books of accounts and records from the corporate debtor, in this case, the former management of Byju’s, the report said.
Documents submitted to the Interim Resolution Professional (IRP) as part of the Corporate Insolvency Resolution Process (CIRP) indicate that 1,784 employees have collectively asserted claims amounting to Rs 301 crore in unpaid wages. This amount exceeds the Rs 100 crore previously recognised by Byju’s as outstanding employee payments a few months prior.
The creditors’ list from August 30 reveals a diverse array of claims. Notably, several senior executives have submitted claims exceeding Rs 50 crore, indicating that high-level leadership may be seeking substantial compensation.
Additionally, numerous mid-level employees have filed claims ranging from Rs 10-30 lakh, suggesting that payment issues might be prevalent across various organisational tiers.
Since the former management is yet to supply these comprehensive records to the resolution professional, the final figures could potentially be adjusted once a full reconciliation is completed.
Officials demand $101 million
Indian tax authorities are pursuing $101 million in unpaid taxes from Byju’s, an ed-tech firm once considered India’s largest startup and now navigating insolvency, according to a report by Reuters.
Valued at $22 billion in 2022 with support from General Atlantic, Byju’s has faced a decline in its financial situation due to various regulatory challenges. Recently, a conflict with US creditors seeking $1 billion in overdue payments has exacerbated the company’s financial troubles, resulting in a freeze on its assets.
First Published: Sep 07 2024 | 10:49 AM IST
