In a significant development in the ongoing insolvency case of BYJU’S, Aakash Educational Services, a fully-owned subsidiary of the beleaguered edtech giant, has filed a claim of Rs 1,400 crore (approximately $166 million) against the company. This claim is detailed in a document available on the Insolvency and Bankruptcy Board of India (IBBI) website, revealing that Byju’s owes Rs 1,404 crore to Aakash Educational Services, which is listed as an “unsecured financial creditor.”
The document also highlights additional claims against BYJU’S, including Rs 20.3 crore owed to InCred Financial Services, Rs 47 crore to Aditya Birla Finance, and over Rs 11,000 crore to Glas Trust Company, representing the edtech’s US-based term loan B lenders.
The IBBI has sought clarifications from Anglo Asia Limited and Aakash Educational Services Limited regarding these claims. A chartered accountant (CA) speaking with YourStory noted, “It’s not unusual for a wholly-owned subsidiary to give its parent a loan. But this suggests that Byju’s must have not repaid back the loan or it may be repaying it in installments, but before getting admitted to insolvency, it owed Aakash Rs 1,400 crore.”
Further details from IBBI’s website reveal that the tax departments from the Government of India and the Government of Karnataka have also filed claims totaling over Rs 848 crore (around $101 million) as part of the corporate insolvency resolution process (CIRP). The Government of India’s claims include over Rs 157 crore from the Central Board Of Indirect Taxes & Customs (CBIC) and the Department of Revenue, while the Government of Karnataka has claimed over Rs 184 crore and Rs 506 crore from the Commercial Tax Department.
In addition, 1,784 employees of BYJU’S have filed claims amounting to more than Rs 300 crore, and 94 vendors have filed claims close to Rs 380 crore. Overall, 1,887 parties have submitted claims worth over Rs 15,000 crore. The largest claims are from unsecured financial creditors, including Aakash, Aditya Birla, and Glas Trust.
Reuters first reported on the government dues being claimed from BYJU’S. A spokesperson for BYJU’S stated that all the claims are unverified. The insolvency proceedings for BYJU’S began on July 16 when the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted a plea from the Board of Control for Cricket in India (BCCI), initiating a CIRP for BYJU’S’ parent company, Think and Learn Private Limited (TLPL). Following a Rs 158 crore settlement between the edtech firm and the BCCI, approved by the NCLAT on August 2, BYJU’S is now undergoing insolvency proceedings under an interim order from the Supreme Court of India, which stayed the appellate tribunal’s decision on August 14.