Indian tax officials are demanding $101 million in dues from education-technology business Byju's, which was once the country's largest startup but is now insolvent, according to claim documents.
Byju's, backed by General Atlantic, was valued at $22 billion in 2022, but its fortunes have dwindled owing to several regulatory concerns and, most recently, a disagreement with U.S. lenders who are seeking $1 billion in unpaid dues, prompting the company's insolvency and asset freeze.
Pankaj Srivastava, a court-appointed resolution specialist, is running the firm and is asking lenders, workers, vendors, and the government to file claims for unpaid dues.
According to records on the Insolvency and Bankruptcy Board of India website, India's revenue agency has filed a claim for $18.7 million, while the tax department of Karnataka, where Byju's is located, is demanding $82.3 million.
Reuters was the first to uncover the demand figures, which indicate how much New Delhi feels Byju's owes it, following months of employee complaints that their salaries and obligatory tax contributions to the government had been delayed or skipped.
The overdue sums were defined as "statutory dues" in the claim form, but no further details were provided.
Overall, over $1.5 billion in claims have been lodged by 1,887 creditors, with the majority of them still being reviewed, according to additional claim records.
Byju's, which operates in over 21 nations, gained popularity during the COVID-19 epidemic by providing online education courses. It has over 27,000 employees, including 16,000 instructors.
Its collapse promises to be the largest upset in a famed startup industry, setting off a protracted struggle by hundreds of panicked employees to recoup dues and secure their employment.
