Politics · India Bureau
NCLT halts Byju's K3 asset sale citing massive valuation gap
India's insolvency tribunal has frozen the sale of assets from Byju's K3 Education subsidiary, questioning why Rs 150 crore in assets were sold for approximately Rs 16 crore. The order will remain in effect until the next hearing scheduled for September 21.
LSN India ·
The National Company Law Tribunal (NCLT) in Bengaluru has issued a status quo order freezing any further disposal of assets from K3 Education, a subsidiary of Byju's parent entity Think and Learn Private Limited (TLPL), pending legal clarification over the asset valuations.
A two-member bench directed both the resolution professional of TLPL and newly impleaded respondents to maintain the existing position regarding articles, equipment and other assets auctioned on August 2 until the tribunal's next hearing. The order comes amid serious concerns that assets valued at approximately Rs 150 crore were disposed of for just Rs 16 crore.
The freeze was granted following a petition by the resolution professional of K3 Education and Kritikal Solutions, both seeking protection of the assets under insolvency proceedings. The tribunal's intervention reflects growing scrutiny of asset transactions during the insolvency resolution process for the cash-strapped edutech company.
Byju's has faced mounting financial pressures in recent months, with the company navigating multiple insolvency proceedings across its various subsidiaries and legal challenges related to its business operations and financial disclosures.