Aakash sends legal notice to EY alleging conflict of interest, professional misconduct

Aakash Educational Services Ltd (AESL) 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 has alleged that EY was deeply involved in its financial operations since 2021, including advising on the proposed merger with Think & Learn Pvt Ltd (TLPL/Byju’s) and structuring and conversion of debentures into equity, it has now come to light that EY also acted as the “exclusive financial advisor and official result validators” to AESL’s direct competitor, Allen Career Institute.

This development comes in the midst of strong accusations of professional misconduct against EY for acting as the Resolution Professional (RP) of TLPL/Byju’s and initiating malafide legal proceedings against AESL before the National Company Law Tribunal (NCLT), Bengaluru, with the alleged objective of disrupting AESL’s smooth operations. AESL claims that this simultaneous engagement with a competitor represents an unethical conflict of interest and has called for investigation into EY’s conduct.

Sanjay Garg, Head-Legal of Aakash, said, “AESL had 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 initiation of further civil and criminal proceedings against EY in this regard.”

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. AESL states that this 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.

The notice gains significance in light of whistleblower emails from an EY employee, which allegedly expose orchestrated fraudulent insolvency proceedings against TLPL and applications filed against AESL at the behest of EY and GLAS Trust Co. LLC. These matters are currently under consideration by the NCLT, Bengaluru.

Garg added, “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.”

The notice was sent to EY’s registered offices in Gurgaon, Bengaluru, Mumbai, and New Delhi, and specifically addressed partners and officials including Shailendra Ajmera, Ajay Shah, Riad Joseph, Dinkar Venkatasubramanian, Pulkit Gupta, Lokesh Gupta, Rahul Agarwal, and Renu Kochar. AESL has demanded that EY immediately cease acting as process advisor in TLPL’s insolvency proceedings.

Also See: NCLAT dismisses appeal of Byju’s RP in Aakash shareholding dispute