Aakash Educational Services Ltd (AESL), a leading test preparation company, has issued a second legal notice to consultancy firm EY India, escalating its accusations of conflict of interest and professional misconduct. The latest notice targets not only the firm but also several of its partners and employees.
At the core of the dispute is EY India’s alleged role in advising AESL’s direct competitor, Allen Career Institute, while also previously serving as a financial advisor to AESL itself and its parent company, BYJU’S. AESL argues that this dual role represents a clear breach of professional conduct, compromising confidentiality and trust.
This new legal notice, dated July 6, 2025, intensifies a legal standoff that began in May 2025, when AESL first accused EY of unethical practices. The company claimed that EY acted in a dual capacity that created a serious conflict, especially given the competitive sensitivity in India’s booming edtech and coaching sector.
AESL also revealed that it is actively evaluating further legal steps, including civil and criminal proceedings against EY India, for what it describes as a significant violation of professional ethics. The firm’s legal team is reportedly gathering more evidence and assessing the potential damage caused by EY’s alleged misconduct.
These developments mark a new chapter in the increasingly contentious rivalry within India’s test-prep industry, particularly between AESL and Allen, two of the country’s most prominent coaching networks. The legal escalation also raises broader concerns about ethical boundaries and client confidentiality within the consultancy sector, especially when firms serve clients with overlapping or directly competing interests.
As of now, EY India has not publicly responded to the second legal notice. The outcome could have implications for its future consulting relationships within the Indian education and startup ecosystem.
