US Court Cites Repeated Defiance as It Slaps BYJU’S Founder With Massive Penalty

US Court Orders Byju’s Founder to Repay Over ₹86,000 Crore in Loan Default Case

The420 Web Desk
2 Min Read

November 22, 2025:  In a major legal setback for the Indian edtech ecosystem, the Delaware Bankruptcy Court in the United States has ordered Byju Raveendran, founder of BYJU’S, to personally repay more than ₹86,000 crore in a loan dispute case.

The order was issued after the court found Raveendran in default for failing to comply with multiple discovery and financial disclosure instructions.

The total court-imposed liability includes:

  1. ₹44,239 crore (equivalent to $533 million) as the primary obligation
  2. ₹44,872 crore (equivalent to $540.64 million) across additional legal claims (Counts II, V and VI)

Court Seeks Detailed Financial Trail

The order also requires Raveendran to provide complete records of asset movements and fund transfers connected to BYJU’S Alpha, including: Transaction history, Asset declaration documents, Financial trail related to Camshaft LP Interest and associated entities

Despite repeated notices, neither Raveendran nor BYJU’S has issued an official response to the ruling.

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Background: The $1 Billion Loan and Dispute

BYJU’S Alpha was formed when Think & Learn Pvt. Ltd. (TLPL), the parent company of BYJU’S, raised a $1 billion (approx. ₹83,000 crore) Term Loan B from institutional investors.

Lenders later accused Raveendran and the company of violating loan terms and illegally transferring $533 million (approx. ₹44,239 crore) outside US jurisdiction. Following legal proceedings, GLAS Trust Company LLP assumed control of BYJU’S Alpha.

Both parties subsequently moved bankruptcy court for a full forensic trail of the alleged transferred funds.

Repeated Contempt and Unpaid Penalties

Court filings also show that Raveendran had previously been held in contempt and fined $10,000 (approx. ₹8.3 lakh) per day — a penalty he reportedly has not paid.

The court noted that since Raveendran resides outside the US and has repeatedly ignored compliance directions, a default judgment was the only effective measure.

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