Aakash Sends Second Legal Notice To EY India Over Conflict Of Interest

Coaching chain Aakash Educational Services Ltd (AESL) has sent a second legal notice to EY India, including the consultancy firm’s multiple partners and employees, over alleged conflict of interest and professional misconduct.

The latest legal notice pertains to the consultancy firm acting as a financial advisor to AESL’s direct rival Allen.

In a statement, Aakash alleged that EY, despite being “deeply involved” in its financial operations since 2021, also acted as the “exclusive financial advisor and official result validators” to AESL’s direct competitor, Allen Career Institute.

The notice, filed via senior advocate CV Nagesh, alleges that simultaneous engagement with AESL’s competitor represented an “unethical conflict of interest”. The coaching chain also sought a probe into EY’s conduct.

“… AESL has now come to know EY acted as an exclusive financial advisor and official result validator 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,” said Aakash’s legal head Sanjay Garg.

The notice names the following EY partners and employees:

• Shailendra Ajmera (partner, transaction advisory services), also the resolution professional (RP) of BYJU’S
• Ajay Shah (partner)
• Riad Joseph (partner)
• Dinkar Venkatasubramanian (partner, transaction advisory services)
• Pulkit Gupta (partner, restructuring and turnaround strategy)
• Lokesh Gupta (strategy and transactions)
• Rahul Agarwal (director)
• Renu Kochar (senior manager, debt and special situations)

“Such allegations are not new to EY as in the past, Mr. Dinkar Venkatsubramanian, Leader & Partner, Debt and Special Situations, EY India, was charged with professional misconduct and breaches under the Chartered Accountant’s Act and was faced with fine, severe criticism and reprimand for his action and role and hence it’s high time that the affairs of EY must be investigated at the highest level for its professional dishonesty and violation of statutory norms,” added Garg.

In a statement, Aakash claimed that the legal notice stemmed from EY failing to provide documents and communications related to key transactions involving AESL despite “repeated” email requests.

“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…,” added Aakash.

Responding to AESL’s claims, an EY India spokesperson said, “We refute all allegations. We treat matters of client confidentiality and conflict with utmost seriousness. Therefore, we cannot comment further on this matter”.

Aakash Vs EY India’s Legal Battle Continues

This is the second legal notice issued by Aakash against the consultancy firm in recent months. In May, AESL reportedly accused EY India of conflict of interestAESL reportedly accused EY India of conflict of interest and breach of professional conduct for acting in a dual capacity by advising both BYJU’S and Aakash, “despite being fully aware of the hostile and litigated nature of their relationship”.

Just last month, the issue escalated as AESL moved the National Company Law Tribunal (NCLT)AESL moved the National Company Law Tribunal (NCLT) against the consulting giant, seeking to either dismiss a petition filed by BYJU’S, alleging oppression and mismanagement or make EY LLP and its partner, Ajay Shah, as respondents to the case.

For context, BYJU’S acquired the coaching chain in 2021 in a cash and stock deal. However, the failed acquisition has been marred by governance issues and a dispute over control of AESL, as the troubled edtech company faces insolvency proceedings. The control of the coaching chain, with a majority stake, now rests with Manipal Group’s Ranjan Pai.

At the heart of the matter is the family office of Manipal Group chairman Ranjan Pai acquiring the $250 Mn debt availed by then-BYJU’S Aakash from Davidson Kempner in 2023. That year, he invested a total of $300 Mn in the company. However, the situation changed after Aakash’s board approved a proposal to convert this investmentAakash’s board approved a proposal to convert this investment into a 40% stake in the company, thereby giving Pai control of the coaching chain.

Thereafter, last year, Aakash moved to change its AoA to raise external funding, which it said was critical for its survival. However, many stakeholders, including BYJU’S financial creditor Glas Trust, challenged it saying that the alteration will lead to their stakes getting diluted in the startup.

Last, the NCLT had ordered a status quo on the shareholding of the AESL.

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