BCCI claims default in payment by ex-sponsor Byju's worth INR 158 crore
Byju's terminated its sponsorship contract with the Indian cricket team earlier this year before Dream11 took over.
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In the latest turn of events, Ed-tech platform BYJU's parent firm Think and Learn Private Limited has received a notice for defaulted payment from the National Company Law Tribunal (NCLT) worth INR 158 crores. The notice of default was affected after a complaint was filed by the Plaintiff—Board of Control for Cricket in India (BCCI). It is worth mentioning that Byju's was the title sponsor for the Indian Cricket Team until Dream Sports took over.
As per general procedure, Defendant will have a two-week time to file an official reply against the claims made by the complainant. Meanwhile, the BCCI will have a week to file a rejoinder related to the case after Byju's reply, if any.
The NCLT portal revealed, “It is stated that the General notice was issued to BYJU’s vide email dated 06.01.2023 and the default amount of Rs.158 crore, excluding TDS as reflected.”
BCCI-BYJU's to meet next in hearing on December 22
The case between the BCCI and Think and Learn Pvt Ltd was officially registered on November 15, while the initial hearing was made on November 28. Meanwhile, the parties will now present material evidence in the next hearing. It is worth mentioning that the next hearing on the matter is scheduled for December 22. Speaking to Moneycontrol on November 28, an official from BYJU's revealed, “We are in discussions with the BCCI to settle the matter, and we hope to achieve that soon.”
The company has been undergoing several restructurings amid tough times related to its costs and expenditures. This was evident when the Bengaluru-based firm chose not to renew its annual sponsorship contract with the BCCI back in June. It was then that Dream11, a fantasy sports platform co-founded by Harsh Jain, secured the title rights from the apex cricketing body in India.
Additionally, the company also had an option to renew its multi-year deal with the International Cricket Council (ICC), which eventually didn't go through.