Aakash Educational Services has submitted a petition to the NCLT insolvency tribunal, requesting the rejection of a petition filed by the edtech company Byju's and to include consultancy firm E&Y, along with its partner Ajay Shah, in the process. 

AESL claims that EY has provided various strategic, financial, and compliance advisory services to the company and is currently acting against AESL through Shailendra Ajmera—the appointed Resolution Professional (RP) of Byju's, who also holds a senior position at EY.

The filing states that EY allegedly provided advice on the valuation and structuring of NCDs issued to Davidson Kempner, handled tax and regulatory matters related to the equity conversion to the Manipal Group, and was involved in internal board-level decisions and corporate strategies at AESL as recently as October 2024. 

Presented evidence includes internal emails and advisory documents that indicate EY's participation in financial forecasting, liquidity management, and decision-making processes.

Crucial evidence mentioned comprises an email dated September 20, 2023, from AESL to Ajay Shah, which shares profit and loss statements along with cash flow requirements, and another email from Ajay Shah dated January 13, 2024, that provides Management Representation Letters for audit purposes.

AESL has also indicated that it might escalate the issue to regulators, including the Insolvency and Bankruptcy Board of India (IBBI) and the Ministry of Corporate Affairs, claiming that Ajmera’s role as RP is “severely compromised.”

 

This action follows shortly after AESL issued a legal notice to Ernst & Young (EY), accusing them of a conflict of interest in the ongoing corporate dispute involving Byju's.

This development occurs against the backdrop of an ongoing legal dispute between AESL and Byju's, which began when Byju's acquired AESL in 2021 for around $950 million in a deal that included 70 percent cash and 30 percent equity. 

As part of the agreement, the promoters of Aakash—the Chaudhry family—and private equity firm Blackstone were expected to receive shares in Think & Learn.

Also Read: How Razorpay's Co-Founders Are Running a Fintech Revolution

However, the share exchange encountered obstacles when the Chaudhry family declined to transfer their remaining stake, citing concerns regarding governance. Afterwards, Byju's issued a legal notice to the family, leading to an intense legal struggle over the control of Aakash, involving shareholders, Ranjan Pai’s Manipal Group, Blackstone, the Chaudhry family, and Byju's, which has been mired in insolvency proceedings for over two years.