Th lawsuit exposes Byju Raveendran’s “Web of Deception” was designed and executed to defraud lenders. Byju along with Divya Gokulnath and Anita Kishore are allegedly responsible for fraudently transferring loan proceeds, misinterpreting financial information and preventing lenders from exercising remedies. This follows a recent Delaware court ruling affirming the fraudulent activities of transfers and conversion that occurred.
Timeline of the theft
Going back three years in March 2022, after receiving the Term Loans, BYJU’s Alpha , then under the control of BYJU’s enterprise defaulted on the credit agreement kickstarting a series of “systematic and unlawful fraudulent transfers” the lawsuit read. Including Byju and his brother Riju Raveendran, BYJU’s Alpha acting at the best of the former transferred $533 million (over Rs 4,000 crore) to Camshaft Capital Fund LP.
Between March 2023 and February 2024, despite lenders stripping BYJU’s of control over its U.S. entity Alpha, founders Byju and Anita allegedly continued this transfer unlawfully. They were first sent to an affiliated non-guarantor firm, Inspilearn LLC, for no compensation, then to an offshore trust on the same day Alpha filed for bankruptcy. The redeemed funds were subsequently moved to an unknown non-U.S. subsidiary, with uncertainty surrounding any further transfers.
This lawsuit shows BYJU;s Alhpa seeking damages for breach of fiduciary duty by Byju, and for aiding and abetting by Byju, Divya, and Anita, along with compensation for fund conversion, civil conspiracy, legal and interest costs, a full accounting of Alpha Funds, and any additional relief the court finds appropriate.