US Court Orders Byju Raveendran to Pay $1 Billion in Fund Diversion Case
A US bankruptcy court has ordered Byju Raveendran, founder of edtech firm Byju’s, to pay over $1 billion after being found in default for failing to comply with court directives in a case involving alleged diversion of funds from Byju’s Alpha. The ruling follows accusations by lenders that $533 million from a $1.2 billion loan was improperly transferred, prompting the court to demand a complete accounting of how the funds were used. The court called the judgment “extraordinary”, citing the unusual circumstances and Raveendran’s repeated refusal to cooperate.
The allegations revolve around claims that the funds were moved through OCI Limited and potentially diverted for personal use, though Raveendran denies wrongdoing. Evidence presented to the Delaware Bankruptcy Court, including sworn statements from OCI founder Oliver Chapman, intensified scrutiny surrounding the transactions. The case has unfolded amid severe financial and regulatory pressures for Byju’s, once valued at $22 billion but now struggling under mounting legal and operational setbacks.
As part of the ruling, Byju’s must pay $533 million related to a 2022 transfer and an additional $540.6 million tied to a 2023 hedge fund transaction. Raveendran was previously held in contempt for ignoring court orders and fined $10,000 per day, yet no payments have reportedly been made to date. The legal action highlights escalating concerns about transparency in cross-border financial movements, with stakeholders now awaiting detailed disclosures on the disputed funds.
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