A US court has delivered a severe blow to the founder of the ed-tech giant BYJU’s, issuing a default judgment that holds Byju Raveendran personally liable for repaying over USD 1 billion. The judgment stems from the ongoing dispute with BYJU’s Alpha and US-based lender GLAS Trust Company LLC.
The Delaware Bankruptcy Court issued the judgment on November 20, explicitly citing Raveendran’s failure to comply with discovery orders and his repeated evasiveness throughout the proceedings. This significant ruling requires him to pay the cumulative sum across multiple counts:
“The court will enter default judgement against Defendant Raveendran…in the amount of USD 533,000,000, and on Counts II, V and VI in the amount of USD 540,647,109.29,” the judgment stated.
⚖️ Case Background: The Missing $533 Million Alpha Funds
The legal battle revolves around BYJU’s Alpha, an entity established while Raveendran was managing the ed-tech company, Think and Learn Private Limited (TLPL).
The Debt: TLPL received a $1 billion Term Loan B from US-based lenders.
The Allegation: Lenders subsequently alleged that $533 million of that debt was unlawfully transferred out of the US via BYJU’s Alpha, violating loan terms.
GLAS Trust approached the Delaware court, obtaining an order to take control of BYJU’s Alpha and filing petitions seeking discovery into the missing transactions.
🛑 Contempt and “Strategic Failure”
The core reason for the massive default judgment is Raveendran’s willful defiance of the court’s authority.
The court noted that Raveendran was fully aware of the discovery order but simply refused to comply. The judgment explicitly stated the court’s finding:
“The facts and circumstances of this case indicate that Raveendran’s continuing failure to adequately respond to the pending discovery requests is a personal decision by Raveendran, himself.”
The court labeled his behavior a “strategic pattern of willful failure to comply with discovery.
Sanctions Ineffective
The court had previously imposed sanctions of $10,000 per day on Raveendran until he complied. However, the judgment noted that these monetary sanctions “remain unpaid and have been ineffective,” making the harsher sanction of a default judgment appropriate given his refusal to comply.
The ruling requires Raveendran to provide a complete and precise account of the Alpha Funds and any related proceeds, including all subsequent transfers.
End…
