Byju Raveendran, the founder of the embattled Indian ed-tech giant Byju's, is facing a significant legal setback in the United States, with a court ordering him to pay over $1 billion in a default judgment. The ruling, issued by the Delaware Bankruptcy Court on November 20, 2025, holds Raveendran personally liable for the substantial sum following allegations of non-compliance with court orders and the fraudulent transfer of funds.
The case revolves around Byju's Alpha, a US-based subsidiary established in 2021 to manage a $1.2 billion term loan obtained from global lenders. Allegations surfaced that approximately $533 million was illicitly transferred from Byju's Alpha to Camshaft Capital, a hedge fund, and subsequently moved through affiliated entities to an offshore trust. This led to accusations that Raveendran and others orchestrated a scheme to shield funds, thereby compromising the rights of the lenders.
The Delaware Bankruptcy Court determined that Raveendran had repeatedly failed to comply with discovery orders, remaining evasive despite multiple opportunities to cooperate. The court stated that Raveendran had knowledge of the discovery order but refused to comply. Judge Brendan Shannon noted a "pattern of delay and obfuscation" as justification for the substantial award. Consequently, the court issued a default judgment, a ruling made when a party fails to participate in litigation or ignores court orders.
The judgment breaks down the $1.07 billion liability as $533 million in damages for the fraudulent transfer of Byju's Alpha's funds in 2022 and $540.6 million related to the transfer of the debtor's interest in Camshaft Capital Fund. The court has also directed Raveendran to provide a "full and accurate accounting" of the Alpha Funds, including details of every subsequent transfer and any proceeds. The court also noted Raveendran has been held in contempt of court, with a $10,000-per-day sanction imposed for non-compliance, which remains unpaid.
Raveendran, however, plans to appeal the US court's decision, vehemently denying all allegations. He claims that GLAS Trust, the US lender, misled both the Delaware court and the public, effectively blocking his ability to present a defense. Raveendran argues that the court ignored relevant facts and that he was denied the right to a fair trial. He contends that the funds were not used for personal gain but for the benefit of Think & Learn Private Limited (TLPL), the company operating under the Byju's brand.
The implications of this judgment for Byju's and its founder are far-reaching. While the judgment holds Raveendran personally liable, the enforcement will depend on tracing and locating assets across jurisdictions. For Byju's, already facing financial troubles and restructuring efforts, this legal setback could further erode investor confidence. Creditors will likely attempt to locate Raveendran’s assets in various countries to recover the funds. The case highlights the complex legal and financial challenges facing Byju's as it navigates a turbulent period.
