Tough test: Staff salaries may again be hit at edtech major Byju's

NCLT has asked Byju's to keep funds via rights issue in escrow account and it cannot be withdrawn till the disposal of the matter, according to the sources

Byju’s is expected to encounter another cash crunch, potentially impacting the daily operations of the educational technology (edtech) firm, including salary payments to its 15,000 employees.

The National Company Law Tribunal (NCLT), in its order on February 27, has instructed the edtech firm to place funds obtained from the rights issue in an escrow account.

However, these funds cannot be withdrawn until the resolution of the matter related to the rights issue, according to sources.

This action is part of the oppression and mismanagement petition filed against Byju’s by four of the company’s investors.

“The funds from the rights issue