Byju's Founders Face US Lawsuit Over $533 Million Transfer

Byju's Alpha, the US financing arm of the Indian edtech firm Byju's, has filed a lawsuit against its co-founders, Byju Raveendran and Divya Gokulnath, alleging they orchestrated a fraudulent scheme to divert $533 million in loan proceeds without any value in return. Raveendran has strongly denied these allegations, labeling them as baseless and part of a conspiracy by Glas Trust, which represents disqualified lenders seeking to take control of the company. He argues that a verified affidavit detailing the proper use of the $1.2 billion loan was ignored in the lawsuit. The legal actions highlight ongoing tensions between Byju's leadership and American lenders, who claim that Raveendran and his associates unlawfully transferred significant assets amid the company's financial struggles. This lawsuit follows recent court findings that have largely supported the lenders' claims against Byju's management. The situation underscores the growing legal challenges facing Byju's as it grapples with creditor disputes and allegations of financial misconduct.