Aakash Sends Legal Notice to EY Over Conflict of Interest Allegations

Aakash Educational Institute sent a legal notice to EY, initiating a fresh debate in the corporate advisory world. The well-known test prep company has accused global professional services firm Ernst & Young (EY) of professional misconduct and conflict of interest. According to Hindustan Times, Aakash alleges that EY advised its direct competitor, Allen Career Institute, while also previously being associated with Aakash.

In the response to Aakash’s legal notice, EY said in a statement, “We refute all allegations. We treat matters of client confidentiality and conflict with utmost seriousness. Therefore, we cannot comment further on this matter.”

Allegations of Conflict in Advisory Role

The dispute surfaced after Aakash Educational Services Ltd (AESL), which is backed by Byju, issued a formal notice to EY India. According to the company, EY’s actions breached confidentiality and professional ethics by assisting a direct competitor in the same industry.

EY has been accused of a conflict of interest case revolving around Allen’s ongoing corporate structuring and strategy work, which Aakash believes was influenced by EY’s earlier exposure to sensitive information during their engagement. Aakash claims that EY had access to confidential internal data that should not have been shared or used in any capacity to advise a market rival.

EY’s Dual Engagement Raises Questions

In EY’s professional conflict case, Aakash has raised concerns on how EY could ethically serve both companies operating in highly competitive educational spaces. Sources close to the matter suggest that Aakash had engaged EY for advisory services related to business strategy and internal operations in the past. However, in recent months, Allen is Aakash’s strongest rival in the coaching industry and also started working with EY on business-related initiatives.

This has led to what Aakash views as a clear violation of trust and business confidentiality, as the advisory overlap may have given Allen an unfair competitive advantage. The company is now seeking legal recourse and has asked EY for a formal explanation and an immediate end to any work that involves Allen.

AESL said in a statement, “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. 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.”

EY Yet to Respond Publicly

Legal experts say this case could set a precedent in how advisory firms handle multiple client relationships, especially when they involve direct competitors in sectors like education, where competitive insights can deeply influence market positioning.

Industry experts are watching the situation closely as the Aakash controversy unfolds. With EY accused of conflict of interest, there is growing concern over its past work with both Allen and Aakash. If Aakash’s legal notice to EY leads to a case, it could spark a wider debate on how consulting firms handle client data, maintain ethical boundaries, and ensure proper due diligence in India.

Sanjay Garg, Head of Legal at AESL, said the company has already sent a notice to Ajay Shah of EY. He said, “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.”