New Delhi: Byju Raveendran, founder of the leading edtech firm Byju’s, has suffered a major setback in a United States court, which has ordered him to pay over USD 1.07 billion (around ₹9,600 crore) in a default judgment issued by a Delaware bankruptcy court.
The ruling comes after the court found him responsible for diverting funds from Byju’s Alpha, a special-purpose entity created in Delaware in 2021 to manage the company’s USD 1.2 billion term loan. According to multiple media reports, Judge Brendan Linehan Shannon issued the judgment after Raveendran repeatedly failed to appear in court and provide required documents.
A default judgment is issued when a party does not participate in proceedings or ignores court orders, allowing the court to decide the case without trial.
The case concerns the transfer of USD 533 million from Byju’s Alpha to Camshaft Capital Fund, a Miami-based hedge fund, which was later moved through related entities. The court held Raveendran personally liable, ruling that he aided breaches of fiduciary duty. The total damages include USD 533 million for the unauthorised transfer, along with USD 540.6 million for claims including conversion and civil conspiracy.
Raveendran has denied all allegations and said he will appeal the ruling. He claimed the court acted hastily in issuing the default judgment and prevented him from presenting his defence.