NCLT halts disposal of Byju’s K3 assets auctioned for Rs 16 crore

Allegations of undervaluation and missing documentation

The NCLT Bengaluru bench ordered the stay after allegations surfaced that assets valued at around Rs 150 crore were auctioned for just Rs 16 crore. The resolution professional (RP) of Think and Learn Private Limited (TLPL), Byju’s parent entity, was unable to produce documentary evidence proving ownership of the auctioned items, according to the tribunal’s order.

The plea, filed by the RP of Byju’s K3 Education and Kritikal Solutions, argued that the lack of transparency and hurried auction process warranted intervention. They contended that the assets were being disposed of without proper verification of ownership or proceeds.

Buyer’s credibility and asset movement

The auction winner, Comprint Tech Solutions, has come under scrutiny for its registered address, which the NCLT noted is an under-construction building that was found locked during repeat visits. The tribunal expressed concerns that the buyer might attempt to dispose of the assets to avoid litigation, given the apparent undervaluation.

According to the plea, 15 vehicles loaded with the auctioned assets had already left the warehouse for Mumbai before the NCLT could intervene. The current status and location of these assets remain unclear.

NCLT’s directives and next steps

The NCLT directed Comprint Tech Solutions to be impleaded as a party to the proceedings and ordered it to submit a sworn inventory of the purchased assets, along with their storage location and photographs, within a week. The RP of TLPL was also directed to comply with an earlier order to furnish transaction-related details by August 20.

The tribunal emphasized that the status quo would remain in effect "at least until some concrete evidence comes up," and noted that the stay would not "irretrievably prejudice" any party, including the buyer. The next hearing is scheduled for September 21.

Suspended directors’ stance

The suspended directors of Byju’s supported the plea to halt the asset sale, arguing that the Corporate Insolvency Resolution Process (CIRP) for TLPL is focused on revival, not liquidation. They claimed there was no urgency to auction assets, particularly at such a low value.

The NCLT acknowledged their arguments, stating that the current status of the auctioned assets was "not known" and that further alienation could complicate the resolution process.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

The NCLT’s intervention in the Byju’s K3 asset sale signals heightened scrutiny of distressed asset auctions, particularly where valuations appear disproportionate or documentation is lacking. For founders and operators, this case underscores the risks of participating in insolvency-driven sales—whether as sellers, buyers, or resolution professionals. The tribunal’s focus on transparency and fair value could lead to stricter oversight in future auctions, potentially delaying asset disposals or increasing compliance burdens. Buyers, in particular, may face greater due diligence requirements, especially when acquiring assets from companies under insolvency proceedings.

Key takeaways

• Founders and operators in insolvency proceedings should note the tribunal’s scrutiny of asset valuations and transparency in auctions.
• The case highlights risks for buyers in distressed asset sales, particularly when documentation is incomplete or ownership is disputed.
• The stay underscores the importance of due diligence for bidders, especially when asset valuations appear disproportionate to sale prices.
• The order may set a precedent for how NCLT handles asset sales during insolvency, particularly where revival rather than liquidation is the goal.