Akshata Sharma
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The National Company Law Tribunal (NCLT) has instructed Byju's
to pay salaries regardless of the edtech company's access to the funds raised through its rights issue and warned of an audit if employees are not paid.
"You are a company that is functioning. Surely you should be having revenues," the Bengaluru bench of NCLT said on July 4 while hearing a plea by employees seeking payment of salaries.
The tribunal warned of an audit by the Institute of Chartered Accountants of India (ICAI) if the company failed to pay the staff, Moneycontrol reported.
The tribunal directed Byju's to file a response to the employees' application and listed the plea for hearing in the coming week.
While Byju's paid April and May salaries, it has yet to make full payments for February and March.
The company has blamed the delay on not having access to the funds it raised through the rights issue in February.
The funds from the rights issue are tied up in an escrow account on the orders of the NCLT until the disposal of the case.
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