A suspended director of Indian ed-tech giant Byju’s is required to pay $10,000 daily until he cooperates in locating $533 million allegedly concealed from U.S. lenders. U.S. Bankruptcy Judge Brendan Shannon issued the order against Riju Ravindran, brother of Byju’s founder, amidst a prolonged dispute over the missing funds, which lenders claim following the company’s default.
Ravindran, a central figure in the controversy, was among three Think & Learn Pvt. directors replaced by a trustee in an involuntary bankruptcy case filed in India. Byju’s, a key player in the educational technology sector, borrowed $1.2 billion from U.S. lenders in 2022. However, the firm missed crucial financial deadlines, faced regulatory raids in India, and stood accused of defaulting on its debt obligations. Subsequently, accusations emerged that Byju’s fraudulently transferred $533 million from a U.S.-based shell company, Byju’s Alpha Inc., designated for debt repayment.
Despite seeking to replace their legal team due to a breakdown in defense, Shannon mandated that Ravindran’s American lawyers continue representation until a subsequent hearing next month in Wilmington, Delaware, where the dispute is largely unfolding.
Byju’s contends it is the victim of predatory lending practices, defending its financial maneuvers amidst escalating legal strife. The core of the disagreement pits the startup, headed by entrepreneur Byju Raveendran, against creditors claiming $1.2 billion. The intrigue surrounding the missing $533 million underscores the wider fallout from an emblematic company within India’s burgeoning tech landscape.
The missing money was initially controlled by Byju’s Alpha Inc., now bankrupted and managed by the lenders after the loan default. The U.S. bankruptcy proceedings continue as stakeholders await further developments in this complex case.
For more details, visit bloomberg.com.
Original Story https://www.livemint.com/news/byjus-ex-director-fined-10-000-a-day-over-missing-533-million-11722457297548.html
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