Aakash Educational Services sends another legal notice to EY
Coaching centre operator Aakash Educational Services has issued a second legal notice to EY and several of partners and executives at the consultancy firm, which is managing the resolution process for edtech firm Byju’s parent company, Think & Learn.
Aakash, in which Think & Learn holds a minority stake, accused EY of conflict of interest and professional misconduct. The notice alleged that the consultancy firm has been involved in its financial operations since 2021 while also working as an “exclusive financial advisor and official result validator” for its rival, Allen Career Institute.
“Being privy to various confidential, privileged, proprietary and financial information, documents, records pertaining not only to our clients but also that of our client’s competitor, it is unethical and breach of professional conduct,” Aakash’s advocate said in the notice, which was sent on Wednesday.
EY withheld documents and communications concerning key transactions, the notice said, implying that the firm has been concealing critical information. ET has seen a copy of the legal notice.
EY refuted the allegations. “We treat matters of client confidentiality and conflict with utmost seriousness," it said in a statement.
While profit-making Aakash is not part of Think & Learn’s resolution process, Glas Trust, which represents Byju’s US lenders, has obtained a stay on its move to amend its articles of association, claiming that the amendment would hurt the interest of minority shareholders like Think & Learn and the lenders.
“You should forthwith forbear from acting as process advisor in the insolvency proceedings of TLPL (Think & Learn Pvt Ltd) and further withdraw from continuing to act as resolution professional in the said insolvency proceedings, within a period of seven days from the date of receipt of this notice,” according to the notice.
It said Aakash is considering pursuing further civil and criminal proceedings against EY in this matter.
A whistle-blower from EY India had alleged that EY worked with Glas Trust and was appointed by former resolution professional Pankaj Srivastava to assist him in handling the insolvency proceedings of Think & Learn. The whistle-blower complaint came to light after the NCLT in February approved the appointment of Ajmera as the new resolution professional, replacing Srivastava.
Aakash sent the notice to EY’s registered offices in Gurgaon, Bengaluru, Mumbai and New Delhi. It is addressed to partners and executives including Shailendra Ajmera (current resolution professional of Think & Learn), Ajay Shah, Riad Joseph, Dinkar Venkatasubramanian, Pulkit Gupta, Lokesh Gupta, Rahul Agarwal and Renu Kochar.
The matter related to Byju’s insolvency and the case involving the issues raised by the whistle-blower are currently being heard by the National Company Law Tribunal (NCLT) and its appellate body.
Last month, Aakash moved the NCLT to dismiss a petition filed by Byju’s, which is currently administered by the resolution professional, and to implead EY and its partner Ajay Shah in the case.
The insolvency proceedings against Byju’s parent began last year after the Board of Control for Cricket in India moved the NCLT to recover Rs 158 crore that the company owed the cricket body in a sponsorship deal.
Aakash, in which Think & Learn holds a minority stake, accused EY of conflict of interest and professional misconduct. The notice alleged that the consultancy firm has been involved in its financial operations since 2021 while also working as an “exclusive financial advisor and official result validator” for its rival, Allen Career Institute.
“Being privy to various confidential, privileged, proprietary and financial information, documents, records pertaining not only to our clients but also that of our client’s competitor, it is unethical and breach of professional conduct,” Aakash’s advocate said in the notice, which was sent on Wednesday.
EY withheld documents and communications concerning key transactions, the notice said, implying that the firm has been concealing critical information. ET has seen a copy of the legal notice.
EY refuted the allegations. “We treat matters of client confidentiality and conflict with utmost seriousness," it said in a statement.
While profit-making Aakash is not part of Think & Learn’s resolution process, Glas Trust, which represents Byju’s US lenders, has obtained a stay on its move to amend its articles of association, claiming that the amendment would hurt the interest of minority shareholders like Think & Learn and the lenders.
“You should forthwith forbear from acting as process advisor in the insolvency proceedings of TLPL (Think & Learn Pvt Ltd) and further withdraw from continuing to act as resolution professional in the said insolvency proceedings, within a period of seven days from the date of receipt of this notice,” according to the notice.
It said Aakash is considering pursuing further civil and criminal proceedings against EY in this matter.
A whistle-blower from EY India had alleged that EY worked with Glas Trust and was appointed by former resolution professional Pankaj Srivastava to assist him in handling the insolvency proceedings of Think & Learn. The whistle-blower complaint came to light after the NCLT in February approved the appointment of Ajmera as the new resolution professional, replacing Srivastava.
Aakash sent the notice to EY’s registered offices in Gurgaon, Bengaluru, Mumbai and New Delhi. It is addressed to partners and executives including Shailendra Ajmera (current resolution professional of Think & Learn), Ajay Shah, Riad Joseph, Dinkar Venkatasubramanian, Pulkit Gupta, Lokesh Gupta, Rahul Agarwal and Renu Kochar.
The matter related to Byju’s insolvency and the case involving the issues raised by the whistle-blower are currently being heard by the National Company Law Tribunal (NCLT) and its appellate body.
Last month, Aakash moved the NCLT to dismiss a petition filed by Byju’s, which is currently administered by the resolution professional, and to implead EY and its partner Ajay Shah in the case.
The insolvency proceedings against Byju’s parent began last year after the Board of Control for Cricket in India moved the NCLT to recover Rs 158 crore that the company owed the cricket body in a sponsorship deal.
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