9 months ago
Byju Raveendran Challenges $533M Diversion Claim
Byju Raveendran, the founder of Byju's, is in a legal fight with GLAS Trust.
GLAS says that $533 million from a loan was not used properly, but Byju says the money was used to grow the company.
A court in the US ordered Byju to pay over $1 billion, but he says the court made a mistake.
He is going to appeal and sue GLAS for $2.5 billion.
He has new evidence showing the money was used for the company, like buying another education company called Aakash.
Byju is upset because he thinks GLAS is lying and hurting his company, its employees, and customers.
Byju Raveendran plans to file a $2.5 billion damages claim against GLAS Trust, alleging misconduct.
He argues that $533 million in 'Alpha Funds' was properly invested in Byju's and not diverted, as GLAS claims.
A US court ordered Raveendran to pay over $1 billion, which he contests, saying the court erred in its ruling.
New evidence, including bank records and emails, shows the funds were routed through intermediary entities to Byju's parent company, TLPL.
Raveendran accuses GLAS Trust of misleading courts and the public, and plans to submit this evidence in his appeal and lawsuit.
- Who
- Byju Raveendran, founder of Byju's, and GLAS Trust
- What
- Legal dispute over alleged diversion of $533 million
- Where
- US courts, primarily Delaware Bankruptcy Court
- When
- Ongoing, with recent developments in November 2025
- Why
- Byju Raveendran claims the funds were properly invested in the company, while GLAS Trust alleges diversion
Key facts
- Claim Amount
- Alleged Diversion
- Court Order
- Delaware Bankruptcy Court
- Founder
- Byju Raveendran
- Company
- Byju's (Think & Learn Pvt Ltd)
- Lender
- GLAS Trust
- Loan Amount
- Acquisition
- Aakash Educational Services
Timeline
Byju Raveendran appeals $1B order, driven by belief in Byju's future.
Then, U.S. court backs BYJU'S lenders, boosting his confidence.
In response, he countersues GLAS Trust for $2.5B, appealing $1B order.
New evidence: $533M used to grow Byju's, not misappropriated.
Quotes
Sanjay Garg
Head–Legal, AESL
“It is clear the money received by TLPL is in the nature of a loan/debenture in the framework of external commercial borrowing and cannot be used for the purpose of acquiring equity. If any inquiry was undertaken by a regulatory authority, Aakash could be accused of having allowed a rights issue, thereby enabling an ECB to be used for investment into equity.”
thehindubusinessline.com
Sources
GLAS Trust's claims: Byju Raveendran to file for $2.5 bn damages
Byju Raveendran To Hammer $2.5 Billion Damages Claim In US Court, Unleashes New Evidence Disproving GLAS Trust's $533 Million Fund Diversion Allegations
BYJU’S Founder Files New Evidence in US Court to Refute Allegations of USD 533 Million Misappropriation
BYJU’S Founder To Seek $2.5 Bn In Damages
Aakash puts TLPL's ₹25-cr share allotment in right issue on hold; alleges violations
Have evidence: Byju says lenders misled on $533 mn claim
Aakash puts BYJU’S parent’s rights issue allotment on hold over FEMA, ECB compliance concerns
Byju Raveendran to present new evidence in US court to dispute GLAS Trust’s fund diversion claims
Byju Raveendran to file new evidence in US court, says it disproves ‘$533 m diversion’ charge
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NCLT Issues Notice to BYJU'S RP Over Aakash Rights Issue Funds
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Riju Challenges Byju's Glas Subsidiary's Financing Deal at NCLT
