BYJU founder to challenge US court order directing $1B payment
What's the story
BYJU Raveendran, the founder of edtech giant BYJU'S, is gearing up to contest a US bankruptcy court ruling. The court had ordered him to pay over $1 billion for allegedly obstructing investigations into a $533 million diversion from an American subsidiary. Raveendran claims that Glas Trust, representing US lenders, and Think & Learn's resolution professional (RP), misled the courts by claiming these funds were diverted.
Legal strategy
Raveendran's defense and new evidence
Raveendran argues that Glas Trust was aware of the fund's utilization as its lawyers had accessed this information in other legal proceedings. He plans to present new evidence before the court, including bank statements, emails, intermediary transfer trails, and documentary admissions obtained by Glas Trust. This evidence will also be submitted to Indian courts later. "The funds were used for the benefit of Think & Learn and our expansion," Raveendran said in a statement.
Legal battles
Allegations of round-tripping and upcoming lawsuits
Earlier, BYJU'S Alpha was accused of round-tripping $533 million from a $1.2 billion loan through London-based OCI Limited. Raveendran has denied these claims, saying the money was invested in Think & Learn shares in compliance with Indian laws. His legal team plans to file defamation and damages lawsuits worth over $2.5 billion against Glas Trust, the RP, and other parties involved within 30 days.
Appeal details
Appeal against Delaware insolvency court's order
Raveendran will use the new evidence as part of his appeal against the Delaware insolvency court's November 20, 2025 order. He has also filed a motion with the Delaware Bankruptcy Court to correct what he calls a "premature" damages ruling. The new documents allegedly show that the $533 million flowed from BYJU'S Alpha through intermediary entities into Think & Learn (TLPL).
Misleading information
Raveendran's legal advisor claims courts misled
Raveendran's legal advisor has claimed that both US and Indian courts were misled about the use of Alpha Loan proceeds. The new documents also show that over $475 million was invested into Think & Learn during the same period through share purchases. This supports the founders' stance that no money was siphoned for personal benefit, contradicting Glas Trust and the RP's statements about their lack of knowledge regarding these transfers.