Aakash Educational escalates tussle with EY over professional misconduct

Indian test-prep company claims consulting giant advised rival Allen Career Institute while handling its own financial affairs and Byju's insolvency case

Aakash Educational Services Ltd (AESL) has issued a second legal notice to Ernst & Young LLP (EY), escalating a dispute over what it alleges is a serious breach of professional ethics. It has accused the global consulting firm of a conflict of interest and professional misconduct tied to its simultaneous involvement with Aakash and its competitor, Allen Career Institute.

 

According to the notice, EY had been deeply embedded in Aakash’s financial affairs since 2021, advising on the company’s proposed merger with Think & Learn Pvt. Ltd., the parent of Byju’s, as well as assisting with the structuring and conversion of debentures into equity. 

 

 

Aakash claimed that while performing those roles, EY also acted as “exclusive financial advisor and official result validators” for Allen Career Institute, a rival in India’s highly competitive test-preparation market.

 

The dispute deepens as Aakash Educational Services accused EY of professional misconduct in its role as resolution professional (RP) for Think & Learn Pvt. Ltd (TLPL). Aakash alleged that EY initiated bad-faith legal proceedings before the National Company Law Tribunal (NCLT) in Bengaluru to disrupt its operations, while simultaneously advising rival Allen Career Institute—a dual role Aakash claims constitutes an unethical conflict of interest. The company is calling for a formal investigation into EY’s conduct.

 

“AESL had already issued notice to Ajay Shah of EY and also impleaded him and other partners of EY in the pending oppression and mismanagement petition filed by the RP of TLPL, who is also from EY, to respond to the allegations therein,” said Sanjay Garg, head-Legal of AESL. 

 

“AESL has now come to know EY acted as an exclusive financial advisor and official result validators to a competitor which is a matter of deep concern. AESL is examining the initiation of further civil and criminal proceedings against EY in this regard.”

 

The legal notice highlighted that despite AESL’s repeated requests through emails dated April 12, May 6, and May 17, 2025, EY has failed to provide documents and communications related to key transactions, suggesting concealment of critical information. AESL stated that this refusal contradicts EY’s substantial involvement in AESL’s decision-making and execution of transactions, including the once-proposed merger with TLPL and matters related to the issuance and conversion of debentures.

 

The notice was sent to EY’s registered offices in Gurgaon, Bengaluru, Mumbai, and New Delhi, and specifically addressed partners and officials, including Shailendra Ajmera, Ajay Shah, Riad Joseph, Dinkar Venkatasubramanian, Pulkit Gupta, Lokesh Gupta, Rahul Agarwal, and Renu Kochar. AESL has demanded that EY immediately cease acting as process advisor in TLPL’s insolvency proceedings.  "We refute all allegations. We treat matters of client confidentiality and conflict with utmost seriousness. Therefore, we cannot comment further on this matter," said EY in a statement on Sunday.