US Court's Verdict on Byju's Financial Misconduct

A US bankruptcy court has recently ruled that Byju’s parent company Think & Learn, along with Byju Raveendran’s brother Riju Ravindran and a hedge fund named Camshaft Capital, are responsible for defrauding Byju’s term loan lenders. The court highlighted that Ravindran breached his fiduciary duties as a director of Byju’s Alpha, a US subsidiary established to manage the term loan proceeds.

The $533 Million Fraud Case

The case revolves around the lenders' attempts to recover $533 million, part of a $1.2 billion term loan extended to the startup. Lenders have accused Byju’s and Ravindran of concealing the funds and failing to disclose their location, prompting legal actions to trace the missing money.

Byju's Response to the Allegations

Following the court's decision, Byju Raveendran expressed his concerns on LinkedIn about the misconduct in the company’s insolvency proceedings, though he later removed his post. He vowed to prevent the company from undergoing corporate insolvency resolution proceedings, citing his resilience and alleging criminal collusion between EY India, GLAS Trust, and the interim resolution professional handling the case.