BYJU’S begins March salary disbursements after delay
The salary disbursement, which commenced today, will be completed over the next 10 days, BYJU'S told its employees in email.
Edtech firm BYJU’S has started salary disbursements for March to its employees following a delay, having secured an alternative line of credit as anticipated.
The salary disbursement, which “commenced today”, will be “completed over the next 10 days”, told its employees in an email.
On April 1, the Bengaluru-based company noted that it is “following a parallel line of credit” to ensure the employees receive their salaries by April 8.
BYJU’S had highlighted that the disbursal of salaries was delayed due to a restriction on fund usage imposed by a group of foreign investors following an interim order obtained in late February.
The edtech firm reiterated that despite efforts, approval to access rights issue funds is pending but an “alternative line of credit” has enabled the company to pay its employees.
BYJU’S is at odds against a group of prominent investors in the edtech company including Prosus, General Atlantic, Chan Zuckerberg Initiative, and Peak XV. The investors have sought to void the $200 million rights issue initiated in January by appealing to the National Company Law Tribunal (NCLT).
In an order dated February 27, the NCLT directed that the funds received by BYJU’S for the rights issue be placed in a separate escrow account, with instructions not to withdraw them until the disposal of the oppression and mismanagement suit filed by a group of four investors against the management of the company.
On April 4, during the first hearing at the NCLT Bengaluru bench following BYJU’S extraordinary general meeting on March 29 to increase authorised share capital for the rights issue, the edtech firm pursued arbitration concerning dissatisfied investors. The next hearing on the matter is scheduled for April 23.
This NCLT lawsuit is just one of several ongoing battles facing the edtech company, which is also engaged in a legal dispute with investors in the Karnataka High Court.
Edited by Kanishk Singh
