Byju's Alpha, the US financial arm of Indian edtech giant Byju's, has sued its founder Byju Raveendran, his wife Divya Gokulnath, brother Riju Ravindran, and helper Anita Kishore in the court of Delaware district, alleges for $533 million theft.
Alpha claims the stolen funds were hidden in obscure hedge funds. The accused allegedly prevented lenders from tracing or reclaiming the money.
The funds in question came from a $1.5 billion loan taken by Byju’s. Alpha says part of this was siphoned off through fake transactions and accounting tricks.
The US Bankruptcy Court ruled against Byju’s in the case. The ruling suggests initial merit in Alpha’s charges of theft and deception.
Byju’s says the lawsuit is a ploy by GLAS and disqualified lenders to take over the company. It claims the case is part of a larger “nefarious scheme” reported by MINT.
Raveendran filed an FIR in India accusing ex-resolution professional Pankaj Srivastava, GLAS, and EY employees of conspiracy and fraud in insolvency matters.
Byju’s alleges the FIR followed the release of a video showing bribery. A court official allegedly confessed to accepting bribes to sway the insolvency case reported by MINT.
Byju’s says this could be a Foreign Corrupt Practices Act (FCPA) breach. Names like Vishal Chanani (Redwood) and Dan Ornstein (HG Vora) are being linked to the alleged bribery plot reported by MINT.
The new FIR may slow down or complicate the insolvency proceedings as legal focus shifts to internal misconduct and procedural disputes.
