While hearing a plea by the employees of Byju’s, the edtech startup, the National Company Law Tribunal (NCLT) observed that as a functioning company, Byju’s should have revenues to pay its employees. In fact, the NCLT has ordered Byju’s to pay its employees the salaries it owes them, even if it is unable to access to the funds it has raised from a rights issue.
The company has also been asked to respond to the plea.
A warning has also been issued that if Byju’s fails to pay its staff, there will be an audit by the Institute of Chartered Accountants of India (ICAI).
Although the salaries for April and May have been paid, Byju’s had expressed its inability to clear the salaries of its employees for February and March because its funds were locked in an escrow account, as directed by the NCLT. The money had been raised by the firm in February from a rights issue.
Very recently, Karnataka Labour Minister Santosh Lad had called on Byju’s to promptly address outstanding dues owed to former employees. According to media reports, about 160 to 200 ex-employees have approached the Labour Department with unpaid dues totalling around Rs 4.5 crore. A few days ago, in a meeting held at Vikasa Soudha in Bengaluru, Lad had instructed the company to pay at least 50 per cent of the outstanding dues immediately, with the remaining amount to be settled subsequently.
