NEWARK: The U.S. Bankruptcy Court in Delaware has formally held Byju Raveendran, founder of ed‑tech giant Byju’s, in civil contempt for failing to comply with court-ordered “limited expedited discovery.” The court has directed him to submit ₹8.5 lakh ($10,000) per day to the clerk until all required documents are turned over. The order underscores the court’s assertion of jurisdiction over Raveendran and marks a major flashpoint in the ongoing Chapter 11 proceedings in the United States.
During proceedings, the judge denounced Raveendran’s conduct as “strategic and patterned failure” to comply with even basic requests for information that had been pending for over a year. Multiple missed deadlines and a failure to appear in court were cited as aggravating factors. The ruling could hobble Byju’s ability to restructure its U.S. operations and intensify scrutiny on its leadership.
Discovery Dispute Deepens EdTech Crisis
Last month, U.S. lenders pursuing claims against Think & Learn alleged the founders orchestrated a loan misappropriation of ₹4,449.55 crore ($533 million) via the Byju’s Alpha vehicle. Parallel legal battles are now unfolding in India, where the founders have petitioned the National Company Law Tribunal to stay creditor-led proceedings. Meanwhile, the Delaware court continues to demand compliance before proceeding with the bankruptcy case.
Raveendran’s legal team confirmed the founder “reserves all rights” and intends to challenge the court’s jurisdiction. But with daily $10,000 fines mounting and no documents submitted, pressure is rapidly escalating. A failure to pay could lead to further sanctions, stiffening penalties, or asset seizures by the court.
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Implications for Byju’s Survival
Crisis in Corporate Governance
This latest contempt ruling dramatises governance failures at Byju’s and represents a shift from financial missteps to direct legal insubordination. In India, creditors and the resolution professional are already moving to destabilise founder control, exercising legal leverage over management decisions.
Countdown to Court-Compliant Conduct
The hefty daily penalty—and mounting totals—will test whether Raveendran prioritises US compliance or intensifies jurisdictional challenges. For global creditors, this signals a turning point: either by meeting discovery demands or further weakening their bargaining position in restructuring efforts.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.