According to documents seen by Reuters on Friday, tax officials in India are requesting $101 million in arrears from Byju’s, an education technology business that was once the nation’s largest startup and is currently going through an insolvency procedure.
Backed by General Atlantic, Byju’s was estimated to be worth $22 billion in 2022, but its fortunes have declined because of numerous regulatory problems and, more recently, a disagreement with U.S. lenders over unpaid debt that has caused the firm to go insolvent and resulted in an asset freeze.
Pankaj Srivastava, a resolution specialist designated by the court, is in charge of the business and invites creditors, staff members, suppliers, and the government to submit claims for unpaid debt.
According to records on the Insolvency and Bankruptcy Board of India website, the tax department of the state of Karnataka, where Byju’s is situated, is requesting $82.3 million, while the department of revenue in India has made a claim of $18.7 million.
The demand figures, which show how much New Delhi thinks Byju’s owes it, were originally reported by Reuters. The figures follow months of grievances from the company’s staff, who claimed that their salaries and required tax submissions to the government had been overlooked or delayed.
Without providing further details, the claim form referred to the overdue payments as “statutory dues”.
Inquiries from Reuters were not answered by Byju’s or Srivastava.
According to further claim documents, 1,887 creditors have submitted claims totaling more than $1.5 billion thus far, the majority of which are still pending review.
Byju’s gained popularity during the COVID-19 pandemic by providing online education courses. The company is present in over 21 nations. Approximately 27,000 people work there, 16,000 of whom are teachers.
Its bankruptcy poses the greatest threat to the thriving startup industry, setting off a protracted fight by thousands of terrified workers to recoup payments and save their jobs.
Indian tax officials demand $101 million in Byju’s insolvency process | Start Ups
