US Court Rules Byju Raveendran Must Pay Over $1 Billion
In a significant legal ruling, the Delaware Bankruptcy Court has mandated that Byju Raveendran, the founder of the Indian edtech company BYJU’s, pay more than $1 billion. This ruling stems from Raveendran's non-compliance with court-imposed discovery orders related to the BYJU’s Alpha case. The judgment was issued on November 20, 2025, following a petition filed by BYJU's Alpha and GLAS Trust Company LLC, a US-based lender.
The court found that Raveendran had repeatedly failed to adhere to the discovery orders and described his actions as evasive. The ruling includes a default judgment that requires Raveendran to repay $533 million for what the court termed as fraudulent transfers of funds from BYJU's Alpha, as well as an additional $540.6 million linked to a transfer of interest in Camshaft Capital Fund, a US hedge fund.
Judge Brendan Shannon noted that the court's decision was extraordinary but warranted, given Raveendran's extensive delays and lack of cooperation. The court documented numerous instances of missed deadlines, incomplete submissions, and non-compliance with previous sanctions, which included a $10,000 daily fine imposed for civil contempt earlier in July.
The adversary proceeding was initiated by BYJU's Alpha Inc., the American division currently undergoing Chapter 11 bankruptcy, alongside GLAS Trust, which now manages the debts of the company. Allegations have been made that over $500 million was illicitly funneled out of the company and redirected through various entities to evade creditors.
Raveendran has consistently denied any wrongdoing, asserting that the discovery requests made were improper or unwarranted. However, the court dismissed these objections, reinforcing the necessity for compliance with the legal process.
The judgment coincides with a separate filing in which the bankruptcy estate presented a sworn statement from Oliver Chapman, a UK businessman. The statement provided details on how the contested funds allegedly moved through Chapman's firm, OCI Limited, before being transferred to a Singapore entity that Raveendran is said to be associated with. This filing seeks court approval for a settlement with Chapman and offers the most comprehensive account to date regarding the alleged movement of the Alpha Funds.
This ruling marks a pivotal moment for Raveendran and BYJU’s as they navigate significant financial and legal challenges. The outcome could have far-reaching implications for the company, which has been facing scrutiny over its financial practices and governance.
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