Byjus Crisis: Edtech Byju has suffered another setback. Riju Raveendran, brother of Byju Raveendran, the founder and CEO of this startup, has been found guilty of contempt of the US court. Their US subsidiary Byju Alpha was directed by the court to disclose $533 million received as part of its term loan, but they did not comply with the court’s directions.
Ravindran tell where he hid the money: Raveendran will have to face a financial penalty imposed by the court for his actions. This will be determined in a later hearing. Foreign lenders who had extended loans to the company said, “The court has found Raveendran’s testimony to lack credibility. Either he knows where the money is being hidden. He did not try to locate the location.” The lenders said they will continue to take all necessary legal action to recover the stolen funds.
Riju Ravindran, who was the director of Byju Alpha, was established in 2021 to take term loans. Riju Raveendran was removed as sole director of the US unit by lenders last year. This was also approved by the court.
time line
In May 2023, lenders accused Byju Alpha of hiding $533 million. In September 2023, lenders claimed that Byju had hidden this amount in the obscure hedge fund Camsoft Capital. After this, in November 2023, the US court approved the removal of Riju from the post of director of Buyus Alpha. In March 2024, the US court ordered the arrest of Camsoft Capital founder William Morton. In May 2024, the court found Riju guilty of contempt.
Byju did not give any statement: Earlier this year, Byju’s had claimed that the disputed $533 million was kept with a non-US subsidiary of the company, but did not provide any details. Byju has not commented on this new development. However, sources close to the company said the contempt order has no legal significance or practical impact for Byju or its stakeholders. Company insiders claim that the court has no jurisdiction over Raveendran, an Indian citizen.
