American lenders brought legal action against Byju Raveendran, the founder of the Indian education-technology company byju, and his wife, Divya Gokulnath, in an American bankruptcy court. The trial, deposited in Wilmington, Delaware, accused the couple of being personally responsible for more than $ 500 million in missing loan.
The trial underlined ongoing allegations against Raveendran and Byju, where two US bankruptcy judges found that the company illegally transferred $ 533 million from creditors. Legal efforts aim to hold Raveendran, Gokulnath and another official company responsible for their roles in financial differences.
“This is an action to hold three powerful byju executives responsible for deliberately provoked the debtor (Alpha de ByJU) to fraudulently transfer an asset assessed to more than half a billion dollars for no consideration,” said the trial posted on April 9, 2025.
The dispute focuses on a default loan of $ 1.2 billion, lenders striving to recover the funds. ByJUS’s is accused of having fraudulently transferred part of the product of the loan to a hedge fund in Miami, a decision deemed illegal by the American bankruptcy judge John Dorsey in February.
The trial, filed on April 9, 2025, sought to hold three high -level executives in Byju responsible for the responsibility to transfer francs an asset worth more than $ 500 million without receipt.
“In the light of the recent court decision, there is no doubt that they acted illegally and tried to cover their traces,” said lenders.
Byjjs has vehemently refuted the statements made in a recent US trial accusing the main management of the dollar diversion company. Labeling the case as “baseless” and “frivolous”, Byju said it is an unfounded attempt at the lender representatives to take an illegally control of the company using what they consider as “harmful” tactics.
In response to the trial brought by lenders against its American entity byju Alpha Inc., the company has published a strongly written declaration, declaring: “This trial is only a continuation of the lies perpetuated by Glas, the representative of disgraced lenders in the United States, over a long time.”
The trial, brought by the Alpha de Byju before the United States’s bankruptcy court for the Delaware district in the name of long-term lenders, comes after a decision on February 28 which determined that Riju Ravindran, Byju and the camshaft fund was involved in multiple fraudulent transfers and $ 533 million conversions. It was also found that Ravindran had violated his fiduciary duties as director of the Alpha de Byju.
The Alpha de Byju, a special vehicle for special use (SPV) established in Delaware to receive funds from a term loan of $ 1.2 billion, was taken care of by creditors and placed under the bankruptcy procedure in chapter 11 after having previously checked the $ 533 million in question.
The lenders argue that the actions of the couple were deliberate attempts to prevent the reimbursement and filed this trial within the framework of their current efforts to recover the funds. Despite these efforts, Raveendran and his wife have always refuted the allegations. In response, they claim that the trial is a strategic stratagem of lenders to tear off the control of Byju by questionable means, declaring: “The statements of the lender are completely baseless and false”. This legal battle highlights the complexities surrounding the financial management and the operations of Byju.
Byjjs is currently sailing on bankruptcy procedures in the United States and India. In the United States, lenders are trying to liquidate domestic assets, including educational software companies acquired by ByJU for 820 million dollars, as a means of recovering payments. Simultaneously, efforts are underway in the Indian legal framework to assess the remaining value of the company of Byju, although potential yields remain uncertain.
