Byju Raveendran Ordered to Pay Over $1 Billion by US Court

In a significant legal ruling, a court in the United States has issued a default judgment against Byju Raveendran, the founder of the Indian edtech company BYJU's, requiring him to pay more than $1 billion. The Delaware Bankruptcy Court found Raveendran liable for failing to comply with court-ordered discovery in the ongoing case involving BYJU's Alpha and GLAS Trust Company LLC, a US-based lender.

The judgment, delivered on November 20, includes damages amounting to approximately $533 million for the fraudulent transfer of funds from BYJU's Alpha in 2022, as well as an additional $540.6 million linked to the transfer of interests in the Camshaft Capital Fund, a hedge fund based in the US. Judge Brendan Shannon, who presided over the case, expressed that the relief granted was "extraordinary" but warranted, citing a consistent pattern of delays and evasiveness demonstrated by Raveendran.

The court's findings indicate multiple instances of missed deadlines, incomplete submissions, and non-appearances, alongside the failure to pay prior sanctions, including a daily fine of $10,000 imposed for civil contempt earlier this year.

The legal action was initiated by BYJU's Alpha, the American division currently undergoing Chapter 11 bankruptcy proceedings, in conjunction with GLAS Trust, which now oversees the debtor. The plaintiffs allege that over $500 million was illicitly transferred from the company to various entities, thereby evading creditors.

Raveendran has consistently denied any wrongdoing, arguing in previous filings that the discovery requests were unjustified. However, the court dismissed these objections, reinforcing its position on Raveendran's noncompliance with the discovery orders.

Concurrently, a recent filing has surfaced from the bankruptcy estate, featuring a sworn declaration from UK businessman Oliver Chapman. This document outlines how the disputed funds were purportedly transferred through his firm, OCI Limited, before being directed to a Singapore-based entity alleged to be connected to Raveendran. This motion seeks judicial approval for a settlement involving Chapman and provides a detailed account of the purported movement of the Alpha Funds.

In response to the ruling, Raveendran's legal representatives argue that the funds from the Alpha loans were utilized for the benefit of his educational company, Think and Learn Private Limited, rather than for personal gain. They assert that GLAS Trust was aware of this use and accuse the lender’s appointed agent of misleading the court.

Additionally, Raveendran and the other founders are reportedly preparing to file federal claims in the US alleging racketeering and obstruction of justice, seeking damages of no less than $2.5 billion. These actions are expected to be filed before the close of 2025, indicating that the legal battles surrounding BYJU's are far from over.