Indian tax authorities are seeking $101 million in unpaid dues from education technology firm Byju’s, once the nation’s largest startup, now embroiled in an insolvency process, Reuters reported, citing claim documents reviewed by it on Friday (September 6).
Byju’s, backed by General Atlantic and valued at $22 billion in 2022, has faced a sharp decline due to regulatory challenges and a dispute with US lenders demanding $1 billion in unpaid dues.
The dispute triggered the company’s insolvency, resulting in an assets freeze.
The company is now under the management of court-appointed resolution professional Pankaj Srivastava, who has invited creditors, employees, vendors, and government authorities to claim outstanding dues.
In India, the department of revenue has filed a claim of $18.7 million. The tax department in Karnataka, whose capital Bengaluru is where Byju’s is headquartered, is seeking $82.3 million, documents on the Insolvency and Bankruptcy Board of India website reveal.
The Board was established in 2016 under the Insolvency and Bankruptcy Code, 2016. It is a key pillar of the ecosystem responsible for implementation of the Code that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals.
The figures in the documents on the Board’s website highlight the government’s assessment of Byju’s tax liabilities and follow months of complaints from employees over delayed salaries and missed mandatory tax deposits.
In total, over 1,887 creditors have filed claims amounting to more than $1.5 billion, with most still under review, according to further documents.
Byju’s, which had gained popularity during the COVID-19 pandemic by offering online education, operates in more than 21 countries and employs around 27,000 people, including 16,000 teachers. Byju’s insolvency is sure to be a significant blow to India’s celebrated startup ecosystem, leaving thousands of employees in turmoil as they struggle to recover unpaid dues and salaries, and safeguard their careers.
With inputs from Reuters
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Big trouble for Byju’s amid bankruptcy woes: Tax department seeks $101 million in unpaid dues
