Indian tax authorities are seeking $101 million from education technology firm Byju’s, once the country’s largest startup and now going through insolvency proceedings, claim documents reviewed by Reuters showed on Friday.
Backed by General Atlantic, Byju’s was valued at $22 billion in 2022 but has seen its fortunes dwindle due to many regulatory issues and most recently a dispute with US lenders demanding $1 billion in unpaid dues, triggering the company’s insolvency leading to an asset freeze.
The company is headed by court-appointed resolution professional Pankaj Srivastava, who invites lenders, employees, suppliers and the government to claim unpaid dues.
India’s Revenue Department has filed a claim worth $18.7 million, while the tax department in Karnataka state, where Byju’s is based, is seeking $82.3 million, according to documents on the website of India’s Insolvency and Bankruptcy Board.
Reuters is the first to report the figures in the lawsuit, which reveal how much New Delhi believes Byju’s owes it, and come after months of complaints from the company’s employees that their salaries and mandatory tax deposits to the government have been delayed or unpaid.
The claim document described the outstanding amounts as “legal debts,” without giving further details.
Byju and Srivastava did not respond to Reuters’ queries.
In total, claims worth more than $1.5 billion have been filed so far from 1,887 creditors, with most still under review, other claim documents showed.
Byju’s, which operates in over 21 countries, rose to prominence during the COVID-19 pandemic by offering online education courses. It has around 27,000 employees, including 16,000 teachers.
Its insolvency threatens to be the biggest setback yet for a celebrated start-up sector, sparking a long battle by thousands of panicked employees to recover their dues and protect their careers.
First published: September 6, 2024 | 22:33 IS
Disclaimer
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.