Aakash in NCLT to Implead EY

IN AN IMPLEADMENT application filed before the National Company Law Tribunal (NCLT), Bengaluru, on June 1, Aakash Educational Services (AESL) has requested the tribunal to either dismiss the petition filed by Byju's under Sections 241 and 242 of the Companies Act, alleging oppression and mismanagement, or include Ernst & Young (EY) LLP and its partner Ajay Shah as respondents in the case.

- ANEES HUSSAIN

AESL alleges that EY has been involved in providing a wide range of strategic, financial, and compliance-related advisory services to the company, and is now acting against AESL through Shailendra Ajmera—the appointed Resolution Professional (RP) of Byju's, who is also a senior EY functionary.

"This is a classic case of conflict of interest and abuse of 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."

According to the filing, EY allegedly advised on the valuation and structuring of NCDs issued to Davidson Kempner, tax and regulatory aspects of equity conversion to Manipal Group, and internal board-level decisions and corporate strategy at AESL as recently as October 2024. The application includes alleged internal emails and advisory documents that suggest EY's involvement in financial forecasting, liquidity management, and decision-making processes.