Aakash accuses EY of professional misconduct, advising rivals in conflict of interest
Aakash Educational Services Ltd (AESL) has alleged that EY was deeply involved in its financial operations since 2021, including advising on the proposed merger with Think & Learn Private Ltd, which owns the Byju's brand.
The test preparatory firm said EY has been involved in the structuring and conversion of debentures into equity and it has now come to light that the consultancy firm also acted as the "exclusive financial advisor and official result validators" to AESL's direct competitor, Allen Career Institute.
"Aakash Educational Services has served a second legal notice through Senior Advocate CV Nagesh to multiple partners and officials of Ernst & Young LLP (EY), accusing the firm of conflict of duty and professional misconduct," AESL said in a statement.
An email query sent to EY did not elicit any reply.
"The legal notice highlights that despite AESL's repeated requests through emails dated April 12, May 6, and May 17, 2025, EY has failed to provide documents and communications related to key transactions, suggesting concealment of critical information," the statement said.
AESL alleged that the refusal contradicts EY's substantial involvement in AESL's decision-making and execution of transactions, including the once-proposed merger with TLPL and matters related to the issuance and conversion of debentures.
AESL, Head for Legal, Sanjay Garg said the company has already issued notice to Ajay Shah of EY and also impleaded him and other partners of EY in the pending oppression and mismanagement petition filed by the RP of TLPL, who is also from EY, to respond to the allegations therein.
"AESL has now come to know EY acted as an exclusive financial advisor and official result validators to a competitor which is a matter of deep concern. AESL is examining the initiation of further civil and criminal proceedings against EY in this regard," Garg said.
AESL has claimed that this simultaneous engagement with a competitor represents an unethical conflict of interest and has called for an investigation into EY's conduct.
Byju's founders have also sued EY, citing an email from a whistleblower which shows the involvement of the consultancy firm with GLAS Trust.
US-based GLAS Trust has filed an insolvency case against Byju's.
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