In a recent development, the National Company Law Tribunal (NCLT) has ordered Byju’s, the edtech startup, to pay its employees the salaries owed to them. The NCLT emphasized that as a functioning company, Byju’s should have the revenues to meet its payroll obligations. The company has been directed to respond to this order, and a warning has been issued that failing to pay the staff will result in an audit by the Institute of Chartered Accountants of India (ICAI).
While the salaries for April and May have been disbursed, Byju’s cited its inability to clear the salaries for February and March due to its funds being locked in an escrow account as per the NCLT’s directive. The company had raised the funds from a rights issue in February.
Karnataka Labour Minister Santosh Lad previously urged Byju’s to settle outstanding dues owed to former employees promptly. Media reports indicated that around 160 to 200 ex-employees have approached the Labour Department, seeking unpaid dues totaling approximately Rs 4.5 crore. In a recent meeting in Bengaluru, Lad instructed the company to immediately pay at least 50 per cent of the outstanding dues, with the remaining amount to be settled subsequently.
