Aakash Alleges Conflict of Interest by EY, Demands Byju's-Related Records

As part of its ongoing legal battle with Byju's, Aakash Educational Services Ltd. (AESL) has accused EY of professional misconduct and conflict of interest.

The main focus of the case is AESL's governance and control problems after Byju's failed takeover. AESL's legal team claimed in a strongly written letter dated May 17, 2025, that EY offered advisory services to both AESL and Byju's in a dual capacity, even though EY was fully aware of their entangled relationship.

EY was ordered to stop all activity and keep all contact records for any legal procedures by AESL, which called EY's actions "unethical and legally untenable".

Manipal Group Also Not Happy with EY

The Manipal Group, a major AESL stakeholder, was represented by CrestLaw Partners, who also questioned EY's involvement in providing the group with tax, accounting, and regulatory compliance advice.

As the majority shareholder in AESL, CrestLaw wrote in a letter dated May 21 that the company would also like to note that their client, the Manipal Group, has been informed that there are significant correspondences in AESL's records that demonstrate that EY was a constant factor in both operations and advice given to Mr Byju Raveendran, Byju's, AESL, Aakash Choudhry, Blackstone, and our clients, the Manipal Group.

 "Your involvement in the Corporate Insolvency Resolution Process (CIRP) in any way, through anyone, is a matter of considerable concern, regret and amounts to misconduct," the statement continued.

EY responded to a media outlet by saying that it denies all accusations and takes client confidentiality and security very seriously. EY is therefore unable to provide any additional commentary on this issue.

AESL Threatens to go Legal

Sanjay Garg, the legal head of AESL, emphasised the importance of the matter and said that the organisation has enough evidence to present to any adjudicating or regulatory body to imply that participation in the CIRP process would interfere with the independent professional duties that organisations like you are supposed to carry out.

He went on to say that if EY did not understand the gravity of our point—that EY was both an advisor and a participant in many of the decisions—AESL would be forced to take the necessary action.

This comes amid a lingering legal battle between AESL and Byju's, which started when Byju's purchased AESL in 2021 for around $950 million in a deal that involved 70% cash and 30% equity.

The deal called for shares in Think & Learn to be distributed to the Chaudhry family, Aakash's promoters, and the massive private equity firm Blackstone.

 However, the Chaudhry family's refusal to exchange their remaining shareholding, citing governance concerns, caused difficulties for the share transfer.

The family eventually received a legal notification from Byju's. Blackstone, the Chaudhary family, shareholders, Ranjan Pai's Manipal Group, and Byju's engaged in a bitter court war for control of Aakash, which has been enmeshed in insolvency procedures for more than two years.