New Delhi — A new court filing in the ongoing bankruptcy case involving Byju’s has leveled serious allegations against founder Byju Raveendran, claiming that $533 million in missing funds were secretly funneled back to him and his affiliated entities. The claim was made in the Delaware Bankruptcy Court by Byju’s Alpha, a subsidiary now overseen by the company’s Term Loan B lenders.
According to the filing, the disputed funds were not used for legitimate business purposes such as tablet procurement or advertising services, as previously claimed. Instead, the filing alleges that the money was “round-tripped right back to Byju Raveendran and his affiliates” through opaque financial transactions in 2022, ultimately passing through Singapore-based Byju’s Global Pte Ltd, an entity owned by Raveendran.
These allegations were supported by a declaration from Oliver Chapman, founder of procurement firm OCI Limited, which had previously received most of the funds. Chapman reportedly provided a “down to the cent” breakdown of how the money was handled, asserting it was not used for any commercial purpose related to Think & Learn, the parent firm of Byju’s.
The filing characterizes the movement of funds as “personal enrichment” and accuses Raveendran, along with former OCI representative Rupin Banker, of exploiting OCI to defraud lenders and creditors.
In a statement issued on November 17, the founders of Think & Learn categorically denied the accusations. They described the claims made by GLAS Trust, associated with the TLB lenders, as false and unfounded, calling Chapman’s testimony selective and lacking context.
This development comes after the Supreme Court earlier dismissed petitions from the Board of Control for Cricket in India (BCCI) and Riju Raveendran, brother of the Byju’s founder, who sought to halt insolvency proceedings against the embattled edtech company. The petitions sought to consider a settlement between Byju’s and the BCCI, but the court upheld a prior National Company Law Appellate Tribunal ruling that such a deal required approval from creditors.
The controversy adds another layer to the ongoing financial and regulatory troubles surrounding Byju’s, once valued as India’s most prominent edtech unicorn. (Source: IANS)
