Aakash Seeks to Implead EY in Byju’s Mismanagement Dispute

Aakash Educational Services Ltd (AESL) has filed a plea with the National Company Law Tribunal (NCLT) seeking the dismissal of a petition filed by the edtech company Byju’s and the appointment of consultancy firm Ernst & Young (EY) and its partner Ajay Shah.

In an impleadment application filed before the NCLT in Bengaluru on June 1, AESL requested that the tribunal either dismiss the company petition filed by Byju’s under sections 241 and 242 of the Companies Act, alleging “oppression and mismanagement,” or name EY LLP and its partner Ajay Shah as respondents in the case.

AESL claims that EY, which has provided the company with a wide range of strategic, financial and compliance advisory services, is now acting against it through Shailendra Ajmera, Byju’s resolution professional (RP), who is also a senior EY employee.

“This is a classic case of conflict of interest and abuse of the process,” said the application. “The very transactions now being challenged in the petition , such as the issuance and conversion of non-convertible debentures (NCDs), equity restructuring and internal governance matters — were structured and overseen by EY,” the application added.

More than two months after Byju’s parent company, Think & Learn Pvt Ltd (TLPL), filed a lawsuit with the NCLT to prevent a potential dilution of its stake in Aakash, the petition, filed by Byju’s interim resolution professional (IRP) Sanjay Ajmera, resulted in the shareholding remaining unchanged. The case is scheduled for its next hearing on June 6, 2025.

In a statement, AESL also warned that it will escalate the issue of EY India’s conflict of interest to regulators, including the Insolvency and Bankruptcy Board of India (IBBI) and the Ministry of Corporate Affairs.

Aakash Accusation

AESL has accused EY of a conflict of interest and professional misconduct in its ongoing dispute with Byju’s. The case centres on governance and control issues at AESL following Byju’s failed takeover attempt. AESL has also demanded that EY disclose any documents, information or correspondence related to AESL transactions.

In a letter dated May 17, 2025, AESL’s legal team alleged that EY acted in dual capacities, providing advisory services to both AESL and Byju’s despite awareness of their complex relationship. The letter described EY’s actions as “unethical and legally untenable” and demanded that the firm cease all involvement and preserve all communication records for potential legal proceedings.

In response to the allegations, EY told PTI, “We deny all claims. We take matters of client confidentiality and conflict very seriously. As a result, we are unable to provide any additional comment on this topic.”

AESL’s legal head, Sanjay Garg, claimed that despite being notified, EY continued to violate fiduciary boundaries. AESL has directed EY India to cease all involvement and preserve all communication records for potential use in legal proceedings.