Byju alleges collusion in insolvency proceedings amid whistleblower claims

Byju’s founder, Byju Raveendran, alleged misconduct in the firm’s insolvency proceedings through a public appeal on LinkedIn. He later deleted the post a few hours after publishing it. Raveendran expressed his determination to prevent the company froiuof anything.”

He further alleged the existence of “conclusive evidence of criminal collusion” between EY India, GLAS Trust, and the interim resolution professional (IRP) handling the case. GLAS Trust Company serves as the administrative agent appointed by a group of Byju’s lenders. Raveendran urged authorities to investigate these claims, arguing that the insolvency process harmed Byju’s rather than preserving its value. He invited former and current employees to join efforts to revive the company.

Raveendran stated that he put his personal assets, including his home, on the line to keep the company afloat, countering allegations that his family profited from share sales. His remarks came amid fresh allegations from a whistleblower within EY India, who claimed that the insolvency process was compromised by conflicts of interest and improper influence from GLAS Trust.

The whistleblower document, reviewed by TOI, alleged that EY India’s prior engagements with both Byju’s and GLAS Trust were not disclosed when the firm took on an advisory role in the insolvency process. The whistleblower claimed that Dinkar Venkatasubramanian, who leads EY India’s Debt and Special Situations practice, was working with GLAS on Byju’s financial issues even before the company’s insolvency. Following Byju’s admission to insolvency in July last year, the court appointed IRP, Pankaj Srivastava, allegedly delegated key responsibilities to EY personnel, allowing GLAS to oversee the process. The document further alleges that GLAS was admitted into the Committee of Creditors (CoC) under EY’s oversight, raising concerns about a conflict of interest. The whistleblower claims were not independently verified by TOI.

Despite Byju’s settlement with the Board of Control for Cricket in India, the original creditor that triggered insolvency, the whistleblower claimed the withdrawal was deliberately delayed to ensure that GLAS could retain control over the proceedings.

GLAS Trust hasn’t responded to TOI’s query for comment.When TOI reached out to EY, the company said, “We believe the allegations being circulated are not credible and are without basis. The Insolvency & Bankruptcy Code is a regulated process which provides for grievances to be raised with the concerned authorities,” an EY spokesperson said in a statement.
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