There is a delay in the salaries of 20 thousand employees of Byju, the company may also miss the deadline of March 10 – Dainik Savera Times
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New Delhi : Troubled edtech company Byju has not released February salaries to more than 20 thousand of its employees. The company may miss the March 10 deadline for paying salaries. Its funds raised from rights issue are stuck. The Bengaluru bench of the National Company Law Tribunal (NCLT) had ordered Byju to keep the proceeds from the rights issue in a separate account till the settlement of the case with the investors.
This is approximately 25-30 crore dollars. According to sources, the company does not seem to be in a position to pay salaries to its employees. Banks also remain closed during weekends. The company did not immediately comment on this development. Company founder and CEO Raveendran had told employees earlier this month, we are trying to ensure that your salaries are paid by March 10. We will make these payments only when we are permitted to do so as per law.
Raveendran has said in a letter to the employees that the rights issue has been closed. He told more than 20 thousand employees that I am sad to tell you that we will still be unable to process your salaries. Last month, we faced challenges due to lack of capital. Now despite having funds, we are facing delays. The edtech company said that no funds have been withdrawn. Approximately $533 million is currently held in the company’s 100 percent non-US subsidiary.
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