US Court Orders Byju’s Founder To Pay Over $1 Billion After Default Ruling

New Delhi (RNI) In a major setback for embattled edtech entrepreneur Byju Raveendran, a US bankruptcy court has ordered him to pay more than USD 1.07 billion after holding him personally liable for the movement and concealment of funds from Byju’s Alpha, the company’s US-based financing subsidiary. The judgment was issued by Judge Brendan Shannon of the Delaware Bankruptcy Court after Raveendran allegedly failed to comply with repeated directions to appear before the court and submit required documents, as reported by multiple media outlets.

The ruling was issued as a default judgment, a legal mechanism used when a party fails to participate in court proceedings or ignores orders, allowing the court to rule without a full trial. The dispute centers on funds linked to a USD 1.2 billion term loan arranged through Byju’s Alpha, incorporated in Delaware in 2021 as a special-purpose vehicle to manage capital raised from a consortium of global lenders.

According to court filings, Byju’s Alpha had no operational business and served primarily as a holding structure for the loan money. However, around USD 533 million was transferred from Alpha to Camshaft Capital, a hedge fund based in Miami, and subsequently moved through affiliated entities such as Inspilearn before reportedly ending up in an offshore trust. Filings allege that none of these funds returned to Byju’s Alpha.

Reacting to the judgment, Byju Raveendran denied the allegations and announced plans to challenge the ruling. In a public statement, he said that the default judgment was delivered on an expedited basis, preventing him from placing his defense before the court. The statement argued that relevant facts were overlooked and insisted that Raveendran should have been allowed a full opportunity to present his case.

It further added that GLAS Trust, the entity involved in the proceedings, was fully aware that funds from the Alpha loan were not used for personal benefit but were utilized for the operations of Think & Learn Private Limited, the parent company of Byju’s.

The ruling comes at a time when the edtech giant has been dealing with tightening financial conditions, legal challenges, and mounting scrutiny from investors and regulators across multiple jurisdictions. The latest development is expected to intensify pressure on the founder and may shape the course of the company’s ongoing restructuring efforts.

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