{"id":249318,"date":"2025-03-01T04:21:20","date_gmt":"2025-03-01T04:21:20","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/01\/us-court-says-byjus-defrauded-lenders-the-times-of-india\/"},"modified":"2025-03-01T04:21:20","modified_gmt":"2025-03-01T04:21:20","slug":"us-court-says-byjus-defrauded-lenders-the-times-of-india","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2025\/03\/01\/us-court-says-byjus-defrauded-lenders-the-times-of-india\/","title":{"rendered":"US court says Byju\u2019s defrauded lenders – The Times of India"},"content":{"rendered":"
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MUMBAI\/BENGALURU : A US bankruptcy court has found Byju\u2019s parent Think & Learn, Byju Raveendran\u2019s brother Riju Ravindran and a little known hedge fund Camshaft Capital responsible for defrauding Byju\u2019s term loan lenders.
The court also observed that Ravindran violated his fiduciary duties as a director of Byju\u2019s Alpha, a US subsidiary set up by the startup to receive the term loan proceeds which was eventually placed under the control of the lenders. \u201cIn making its ruling, the Court confirmed that the multiple transfers of funds from BYJU\u2019s Alpha constituted actual fraudulent transfers and conversion (i.e., theft),\u201d the lenders said in a statement late Friday.
The case pertains to the lenders\u2019 efforts to recover the missing $533 million, a portion of the loan amount they had extended the startup as part of the $1.2 billion term loan proceeds. The lenders have repeatedly accused the startup and Ravindran of hiding the money and refusing to disclose the whereabouts of the funds, seeking legal intervention to locate the same. \u201cWe are gratified the Court unequivocally recognized that Riju Ravindran, Camshaft, and BYJU\u2019s together conducted a deliberate fraud on a global scale arising from the theft of $533 million. This is a significant step forward in the Lenders\u2019 efforts to recover the stolen funds that are rightfully owed to them,\u201d the lenders said.
Byju\u2019s Alpha, while under the control of the Raveendran family, had initially appointed Camshaft Capital to manage the funds. They were subsequently transferred to Inspilearn, another US subsidiary of the startup and moved further to what the lenders claim is a \u201cstill undisclosed entity.\u201d
The development came hours after Byju Raveendran took to social media platform LinkedIn alleging misconduct in the company\u2019s insolvency proceedings. He later deleted the post a few hours after publishing it. Raveendran expressed his determination to prevent the company from entering corporate insolvency resolution proceedings (CIRP), stating, \u201cthose who come from nothing are never scared of anything.\u201d He further alleged the existence of \u201cconclusive evidence of criminal collusion\u201d between EY India, GLAS Trust, and the interim resolution professional (IRP) handling the case.<\/div>\n<\/div>\n