Aakash Educational Services (AESL) has issued a legal notice to Ernst & Young LLP (EY), alleging conflict of interest in the ongoing corporate dispute involving Byju’s.
CrestLaw Partners, AESL’s counsel, has accused EY of advising both Byju’s and parties linked to AESL, despite their opposing positions in the matter.
The notice dated May 21, 2025, has alleged that EY was simultaneously engaged with Think & Learn, Byju‘s parent company, and AESL-connected entities. The notice has termed this dual role as legally inappropriate and has asked EY to withdraw from all related engagements. It has also called on EY to preserve all relevant communication records and warned of legal action.
The legal notice asked EY to “advise Shailendra Ajmera of E&Y… to forthwith withdraw himself from conducting further proceedings as the resolution professional, failing which, our
client will be constrained to move an appropriate application/s not only before the
Hon’ble National Company Law Tribunal, but would also undertake similar applications before the regulatory authority including the regulatory authority which controls the financial services sector”.
The notice has referred to a January 2024 email that allegedly indicates EY’s knowledge of transactions between AESL and Byju’s. AESL has said that it holds enough material to demonstrate that EY’s involvement in the ongoing corporate insolvency resolution process could compromise its professional independence.
EY did not respond to FE’s request for comments till the time of going to the press.
In an earlier letter, AESL alleged that despite being put on notice, EY continued to act in disregard of fiduciary boundaries, triggering the legal response. “AESL has demanded EY cease all involvement and preserve all communication records for potential use in legal proceedings,” the letter said.
The development comes in the backdrop of a continuing legal dispute between AESL and Byju’s, which began after Byju’s acquired AESL in 2021 for approximately $950 million in a deal involving 70% cash and 30% equity. Under the agreement, Aakash’s promoters—the Chaudhry family—and private equity giant Blackstone were to receive shares in Think & Learn.
However, the share swap faced hurdles after the Chaudhry family refused to exchange their remaining stake, citing governance concerns. Byju’s later issued a legal notice to the family.
A fierce legal battle followed for control of Aakash, involving shareholders, Ranjan Pai’s Manipal Group, Blackstone, the Chaudhary family, and Byju’s, which has been stuck in insolvency proceedings following more than two years of struggle.