US court imposes penalty on Byju’s director as testimony is ‘not truthful’
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New York: A US judge levied financial penalties on Riju Ravindran after he, the brother of Byju’s founder Byju Raveendran, failed to furnish details about $533 million sought by lenders, The Indian Express reported citing Bloomberg.
The judge termed his testimony “not truthful”, saying that either he is aware of its whereabouts or would not disclose, refusing to trace it.
US Bankruptcy Judge John Dorsey said that the quantum of the penalties will be decided at the future hearing.
Being unable to get Ravindran to reveal where the money is Dorsey said: “I conclude Mr. Ravindran’s testimony is not truthful.”
Dorsey, who had ordered the arrest of the hedge fund manager who helped Ravindran move the cash, however refused to issue arrest warrant for Ravindran.
Ravindran is currently living in Dubai, which does not have an extradition treaty with the US, the report added.
Meanwhile, lenders had earlier took control of a holding company Byju’s Alpha, set up by Think & Learn of which Ravindran, along with his brother and sister-in-law, are the directors.
Ravindran is appealing a decision by Delaware’s Chancery Court approving that seizure.
Meanwhile Think and Learn last month announced that Founder and Group CEO Byju Raveendran was to take “a more hands-on approach in spearheading the daily operations” of the company.
Byju’s is in the vortex of a worsening crisis from need of funds, and huge financial losses alongside fighting several legal suits.
The company’s valuation has fallen below $1 billion (Rs 8,300 crore) with reports saying that efforts were underway to oust Raveendran and members of his family from the company.