Money paid to BCCI is 'clean money', Riju Raveendran tells NCLAT

Formation of committee of creditors stayed till August 2

Riju Raveendran, a Byju’s board member, and younger brother of the edtech founder Byju Raveendran, told the National Company Law Appellate Tribunal (NCLAT) on Thursday that the money paid to the Board of Control for Cricket in India (BCCI) is “clean”.

Representing Riju, senior advocate Puneet Bali said the money was paid from the sale of his Think & Learn Pvt. Ltd (TLPL) shares between 2015 and 2022.  

TLPL is the parent company of Byju's.

Bali said Riju, by the sale of shares during this period, accumulated almost Rs 3,600 crore.

"Of this, Rs 1,040 crore was paid as income-tax. The remaining Rs 2,600 crore was infused in TLBL to ensure it continues as a going concern. The amount with Riju was used to pay the first tranche of settlement amount of Rs 50 crore to BCCI on June 30, 2024. From the liquidation of Riju's personal assets in India, he used to pay the balance amount," Bali said. 

“The income-tax returns have been attached...nothing to do with $533 million. It is clean money. Tax paid money," he told the court. 

The court also deferred the formation of the Committee of Creditors (CoC) till August 2 to ensure the interests of all parties are safeguarded. 

The affidavit added that Riju has not acted in contravention of the orders of the Delaware court in the US. 

Solicitor General Tushar Mehta, appearing for BCCI, told the court that it is clear the amount paid to them is generated in India.

"As we have said earlier, BCCI won't accept tainted money. He (Riju) has disclosed his source. If he is giving us nothing, there can be some suspicion but it's not (in this case).” Mehta said.

He added that he was not interested in the action that the US lenders wanted to take, saying the money paid to them was their only concern. 

The US lenders, represented by Senior Advocate Mukul Rohatgi, have, however, objected to the affidavit saying the 'math did not add up'.

“We are left with nothing, these two Raveendrans have voluntarily gone for insolvency in the US. There is nothing on record to show that they have any money. It can't be that there (US) you are a defaulter and here you come to India and say I'll pay,” he said.

He also asserted that Byju and Riju were both fugitives as they do not live in India anymore. “He is a fugitive, there is an ED investigation and look out circular against him. He will not pay salaries, PFs, and rents but he wants the stamp of approval from a tribunal for settlement."

Rohatgi said the Raveendran brothers are trying to delay the company's insolvency resolution process for six months to deteriorate the value of the company.

A suspended director of the troubled Indian educational tech firm Byju’s must pay Rs 8.37 lakh a day until he helps locate Rs 4,460 crore that his company is accused of hiding from US lenders, a judge said Wednesday, as reported by Bloomberg. 

The bankruptcy court in India had recently admitted an insolvency petition against Byju’s by the BCCI over dues amounting to Rs 158 crore.