BCCI-Byjus Sponsorship Deal : BCCI to Receive Rs 158 Crore from Byju’s After Settling Non-Payment Dispute: In a significant development, the Board of Control for Cricket in India (BCCI) has reached a settlement with Byju’s to recover Rs 158 crore in unpaid dues. The ed-tech giant, which was the official shirt sponsor for the Indian cricket team from 2019 to 2023, had accumulated substantial dues during its sponsorship period. The issue, which had lingered for months, has now been resolved, bringing relief to the cricketing body.
Let’s have a look into more details: BCCI-Byjus Sponsorship Deal
Background of the BCCI-Byju’s Sponsorship Deal
Byju’s entered into a sponsorship agreement with BCCI in March 2019, initially for three years, and later extended by another year. Under this deal, Byju’s was paying Rs 5.5 crore per match, contributing significantly to the BCCI’s revenue. However, as the deal came to a close in January 2023, BCCI revealed that Byju’s had not fulfilled its payment obligations, leading to a legal battle.
Financial Dispute and Legal Proceedings
Byju’s had committed to a total payment of Rs 450 crore by the end of their sponsorship term. Despite making initial payments, the company failed to clear dues for the period from October 2022 to March 2023, prompting BCCI to file an insolvency petition against Byju’s parent company, Think and Learn Private Limited, in September 2023.
The National Company Law Appellate Tribunal (NCLAT) played a crucial role in the proceedings. On July 29, a two member bench reviewed the case, which led to Byju’s filing an appeal. The tribunal, however, dismissed Byju’s appeal and demanded immediate payment to BCCI.
Settlement Details
Byju’s has now agreed to settle the Rs 158 crore dues in installments. The first payment of Rs 50 crore was made recently, with an additional Rs 25 crore scheduled to be paid by August 2, and the remaining Rs 83 crore by August 9. This agreement comes after intense deliberations and a firm stance by BCCI against accepting any tainted money.
Controversies and Allegations
The settlement process was not without controversy. The US-based lenders of Byju’s raised concerns, alleging that the repayment funds were sourced from ‘stolen’ money. Senior counsel Mukul Rohatgi accused Byju’s founder, Byju Raveendran, of financial misconduct and round-tripping funds. Despite these allegations, the NCLAT allowed the settlement to proceed, provided the funds’ legitimacy was verified.
This settlement marks the end of a prolonged financial dispute and ensures that BCCI receives the dues owed, bolstering its financial stability. The resolution also underscores the importance of stringent financial oversight and accountability in sponsorship deals.
Byju’s, once a leading name in the ed-tech sector, now faces challenges in rebuilding its reputation and stabilizing its operations amidst bankruptcy proceedings. The company’s ability to honor its financial commitments will be closely monitored by both its creditors and the larger business community.
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FAQ
What was the total amount owed by Byju’s to BCCI?
Byju’s owed BCCI Rs 158 crore
