Key Takeaways
- Byju Raveendran ordered to pay over $1.07 billion by US bankruptcy court
- Founder held personally liable for fund movement from Byju’s Alpha
- Raveendran denies allegations, plans to appeal the judgment
A US bankruptcy court has issued a default judgment ordering Byju’s founder Byju Raveendran to pay over $1.07 billion, holding him personally responsible for the movement and concealment of funds from the company’s US financing arm.
Court Ruling and Default Judgment
Judge Brendan Shannon of the Delaware Bankruptcy Court issued the ruling after Raveendran repeatedly failed to appear in court or provide required documents. A default judgment allows the court to decide a case when one party ignores legal proceedings.
Raveendran’s Response and Appeal Plans
Byju Raveendran has denied all allegations and announced plans to appeal the judgment. He claims the expedited proceedings prevented him from presenting a proper defense.
“The Court, in our view, ignored relevant facts. Byju Raveendran must be allowed to present a defence and has been denied the right to do so by expediting the trial,” the statement said.
“The Delaware Court Judgement also does not address the fact that GLAS Trust has been aware that the monies from the Alpha loans were not used by Byju Raveendran or any Founder of BYJU’s for their personal gain but were used for the benefit of Think & Learn Private Limited (TLPL),” it added.
Byju’s Alpha and Fund Transfers
Byju’s Alpha was established in Delaware in 2021 as a special-purpose vehicle to manage a $1.2 billion term loan from global lenders. Court documents reveal that $533 million was transferred from Alpha to Miami-based hedge fund Camshaft Capital, then moved through entities including Inspilearn to an offshore trust, with no value returning to Byju’s Alpha.
The case highlights the ongoing facing the edtech giant as it navigates complex international financial and legal challenges.
