Big trouble for Byju's as NCLT asks company to pay salaries to employees or face...

Byju Raveendran, founder of edtech company Byju's, has been facing financial trouble for quote some time. Once a India's most valuable startup, Byju's is now unable to pay salaries of employees of months. It is yet to make February and March payments in full. However, Byju's has paid April and May salaries.

Now, the National Company Law Tribunal (NCLT) has told Byju's to pay salaries irrespective of having access to the funds raised through its rights issue. The tribunal warned of an audit by ICAI if the company failed to pay the staff, MoneyControl reported. The comments by NCLT come while it was hearing a plea by employees seeking payment of salaries on July 3.

"You are a company that is functioning. Surely you should be having revenues," the Bengaluru bench of NCLT said. It also directed Byju's to file a response to the employees’ application and listed the plea for hearing in the coming week.

Why Byju's delayed salaries of employees

The company said that it had no access to the funds it raised through the rights issue in February 2024. The funds are tied up in an escrow account on the orders of NCLT till the disposal of the case. Moreover, around seven vendors have also sued Byju's at NCLT to recover their dues.

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