A whistleblower has alleged that accounting firm Ernst & Young (EY) had manipulated edtech firm BYJU’s CIRP process.
However, the most alarming revelation by the whistleblower is how a legitimate settlement was deliberately derailed to keep Byju’s in insolvency.
The whistleblower said that EY deliberately delayed BYJU’s CIRP process behind the scenes.
EY did not disclose that it had already worked for BYJU’s for two years, the whistleblower alleged.
As per the rule, companies that have already done work in IBBI’s process are kept out of the process.
The whistleblower claims that EY and Glass Trust deliberately delayed the CIRP process, which led to the formation of the Committee of Creditors.
When Zee Business tried to contact EY and IBBI via emails, they didn’t respond to queries.
Byju’s insolvency case
The whistleblower also highlighted that how a legitimate settlement was deliberately derailed to keep Byju’s in insolvency.
After Byju’s co-founder Riju Ravindran cleared outstanding dues with the BCCI on July 31, 2024, the BCCI promptly submitted a withdrawal request on August 16, yet the IRP failed to file the CIRP withdrawal application within the stipulated time, said the whistleblower.
Instead, at GLAS’ behest, it delayed the process, enabling the formation of a Committee of Creditors (CoC) on August 21, thereby transforming what should have been a pre-CoC settlement into a post-CoC settlement, the whistleblower claimed.
The whistleblower alleged that this technical manoeuvre kept Byju’s in bankruptcy, allowing GLAS to maintain control over its assets.
Earlier, Ze Business had learnt that the Ministry of Corporate Affairs might look into a whistleblower’s allegation against EY in the insolvency process.
The whistleblower has come forward with allegations, claiming that the insolvency process of Byju’s was manipulated by US-based lender GLAS Trust with the collusion of EY India and Interim Resolution Professional (IRP) Pankaj Srivastava.
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