US Court Orders Byju Raveendran to Pay Over $1 Billion
A U.S. bankruptcy court in Delaware has issued a default judgment against Byju Raveendran, founder of Byju’s, mandating he pay more than US $1.07 billion after failing to comply with court-ordered discovery in a case tied to missing loan funds. The judgment stems from a 2021 term loan of roughly US $1.2 billion taken out through the company’s U.S. arm.
Funds Transfer and Non-Compliance at Centre
Court filings indicate that US lenders allege about US $533 million was transferred from Byju’s Alpha (the U.S. subsidiary) into entities including a Miami-based hedge fund and subsequently through offshore conduits. The court found Raveendran repeatedly ignored subpoenas and discovery orders, imposing prior contempt sanctions at US $10,000 per day before issuing the default judgement.
Founder Denies Wrongdoing, Plans to Appeal
Raveendran has denied all allegations, stating that the ruling was “premature” and that he was not given a fair opportunity to defend himself. His legal team has announced intentions to appeal the decision and to oppose enforcement actions in international jurisdictions where assets might be held.
Implications for Byju’s and Its Lenders
The ruling intensifies the already severe crisis at Byju’s, which has been facing insolvency proceedings and governance questions in India. Lenders will now seek to enforce the judgment across multiple jurisdictions—a complex and drawn-out process. At the same time, the ruling could further erode investor confidence, complicate restructuring efforts and raise the cost of recovery for creditors.
