Aakash sends 2nd legal notice to EY over alleged misconduct
What's the story
Aakash Educational Services Ltd (AESL) has issued a second legal notice to global consultancy firm Ernst & Young (EY). The notice was sent through senior advocate C.V. Nagesh and alleges professional misconduct and conflict of interest on EY's part. The accusation stems from EY's dual role in working with both AESL and its competitor Allen Career Institute at the same time.
Allegations
EY advising on BYJU'S insolvency proceedings
The legal notice alleges that EY was simultaneously serving as a financial advisor for AESL and its competitor, Allen Career Institute. This, according to AESL, is a serious conflict of interest. The company claims that EY has been deeply involved in its financial operations since 2021, including advising on a proposed merger with BYJU'S parent company Think & Learn Pvt Ltd.
Legal action
AESL's demands from EY
In the legal notice, AESL has demanded that EY withdraw from advising and acting as the resolution professional in BYJU'S insolvency proceedings within seven days. If this demand is not met, AESL reserves the right to initiate legal proceedings against EY. The move comes after EY initiated proceedings against AESL before the National Company Law Tribunal (NCLT), Bengaluru, in its capacity as resolution professional for BYJU'S.
Document dispute
Notice names several officials from EY
AESL has accused EY of not providing documents and communications related to key transactions despite several requests. The company said this refusal contradicts EY's significant role in AESL's decision-making and execution of transactions. The notice names several officials from EY, including Ajay Shah, Shailendra Ajmera, Riad Joseph, Dinkar Venkatasubramanian, and Pulkit Gupta among others.
Whistleblower revelations
Whistleblower emails to NCLT
The notice is significant in light of whistleblower emails from an EY employee, which allegedly reveal fraudulent insolvency proceedings against TLPL. These matters are currently under consideration by the NCLT, Bengaluru. Sanjay Garg, Head-Legal of AESL said they had already issued a notice to Mr. Ajay Shah of EY and impleaded him and other partners in the pending oppression and mismanagement petition in which TLPL's RP, who is also from EY, is involved.