US Court Orders Byju Raveendran to Pay $1.16 Billion in Landmark Ruling
A Delaware Bankruptcy Court has ordered Byju Raveendran to pay $1.16 billion to BYJU’s Alpha and GLAS Trust Company LLC, marking a major development in the ongoing legal battle over the edtech company’s term loan funds.
Key Takeaways
- Byju Raveendran ordered to pay $1.16 billion to lenders
- Court cites “strategic pattern of wilful failure” to comply with discovery
- Raveendran facing $10,000 daily sanctions until compliance
- Legal team announces immediate appeal plans
Court Findings and Default Judgment
In a judgment dated November 20, 2025, the Delaware Bankruptcy Court found Raveendran failed to comply with discovery orders and was “evasive on several occasions.” The court entered default judgment against Raveendran for $533 million on one count and $540.65 million on three other counts.
The judgment stated: “The court will enter default judgment against Defendant Raveendran…in the amount of USD 533,000,000, and on Counts II, V and VI in the amount of USD 540,647,109.29.”
Background of the Dispute
The case centers on a $1.16 billion Term Loan B secured by Think and Learn Private Limited (TLPL), the parent company operating under Byju’s brand. Lenders alleged BYJU’s Alpha violated loan terms and $533 million was “moved out of the US illegitimately.”
BYJU’s Alpha was incorporated when Raveendran managed TLPL. The court directed Raveendran to provide “a full and accurate accounting of the Alpha Funds and any proceeds thereof, including each and every subsequent transfer.”
Court’s Reasoning and Sanctions
The court determined Raveendran’s behavior represented a “strategic pattern of wilful failure to comply with discovery.” Noting that monetary sanctions of $10,000 per day remained unpaid and were ineffective, the court found Raveendran “lives abroad and apparently has no intention of satisfying his financial penalties.”
The judgment stated: “The monetary sanctions have not provided an effective remedy, making a harsher sanction such as default judgment appropriate in this instance.”
Raveendran’s Defense and Appeal Plans
Raveendran’s legal adviser, J Michael McNutt of Lazareff Le Bars Eurl, announced immediate appeal plans. McNutt argued the default judgment deprived Raveendran of the right to present a defense.
“We consider that the US Court erred in its judgment of this matter and will be filing the necessary appeals,” McNutt said. “Byju Raveendran must be allowed to present a defense and has been denied the right to do so.”
McNutt further alleged the court ignored that GLAS Trust knew the Alpha loan funds “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.”
The legal battle continues with pending in Indian courts seeking disclosure from GLAS Trust and TLPL’s Resolution Professional.
