The $533 Million Mystery: From Corporate Needs to Personal Control
A recent filing in a Delaware bankruptcy court has made a shocking allegation, directly contradicting earlier sworn statements from Byju's leadership. The document claims that the majority of the $533 million missing from Byju's Alpha was not used for legitimate business purposes but was instead round-tripped back to founder Byju Raveendran and his affiliates.
The Mechanism of the Alleged Diversion
The court filing, submitted on 15 November by the plaintiff and debtor Byju's Alpha alongside intervener-plaintiff GLAS Trust Company, paints a detailed picture of the fund's movement. It identifies OCI Limited, a UK-based logistics company, as a key player allegedly used to help hide the cash from US lenders.
In a sworn declaration, OCI Limited founder Oliver Chapman provided specifics as part of a proposed settlement. He revealed that while Raveendran had repeatedly claimed the Alpha funds were earmarked for procuring services and equipment for Byju's, the reality was different. Chapman stated that the bulk of the cash was transferred to a Singapore-based corporate entity named Byju's Global, which was owned individually by Raveendran himself.
This demonstrates that Raveendran’s plot was to siphon hundreds of millions of dollars of corporate assets for personal use, the declaration stated. OCI has further implicated former advisor Rupin Banker, alleging he coordinated with Raveendran to misuse the logistics firm in a fraud designed to prevent lenders from recovering their money.
Mounting Legal and Financial Fallout for Byju's
The controversy over the missing $533 million is just one part of a much larger crisis engulfing the Indian edtech giant. Lenders are aggressively seeking repayment of the entire $1.2 billion term loan raised by the company in November 2021. The situation escalated last year when lenders seized control of the US shell company, Byju's Alpha, and forced it into Chapter 11 bankruptcy.
Three other units were also forced into insolvency and placed under the control of a bankruptcy attorney. Simultaneously, Byju's parent company, Think and Learn Pvt Ltd, was also pushed into bankruptcy. Investors, including the Qatar Investment Authority, have sought court rulings to obtain details of Raveendran's personal assets, indicating a deep erosion of trust.
Byju's Vehement Denial of All Allegations
In response to the damning court filing, Byju's released a media statement on 18 November, firmly denying all allegations against CEO Byju Raveendran and his associates. The company's statement argued that the Delaware court submission ignored a crucial fact: that GLAS Trust was aware the Alpha loan monies were used for the benefit of Think & Learn Private Limited and not for the personal gain of the founders.
The company further asserted its right to take legal action against OCI and its director for the reputational and operational damage caused to Byju's by these allegations. This sets the stage for a protracted legal battle as the company fights to clear its name amid severe financial distress.
