The National Company Law Tribunal (NCLT) asked beleaguered edtech company Byju's to pay salaries whether or not it has access to the funds raised via rights issue.
According to media reports, the edtech firm is yet to fully make the payment for employees in February and March. The April and May salaries of employees have already been paid.
The quasi-judicial body warned the company that failure to pay the employees will attract an audit by the Institute of Chartered Accountants of India (ICAI).
"You are a company that is functioning. Surely, you should be having revenues," NCLT's Bengaluru bench said on Thursday.
Byju's had earlier claimed that the delay in paying salaries to employees was because it did not have access to the funds that the company raised through its rights issue.
Meanwhile, a few days ago, Karnataka High Court had set aside an interim order by NCLT that restrained the edtech company from pursuing its second rights issue. Last month, the NCLT had asked Byju's not to go ahead with its second rights issue.
