Byju’s founder, Byju Raveendran, plans to file a $2.5 billion lawsuit against GLAS Trust in the US, while also submitting new evidence to counter allegations that $533 million was misappropriated from Byju’s American financing entity, Byju’s Alpha.
The announcement follows a Delaware bankruptcy court ruling ordering Raveendran to pay over $1.07 billion in a default judgment. The court stated that Byju’s founders had not cooperated with efforts to trace nearly half of the proceeds from a $1.2 billion US term loan issued in 2021.
Raveendran has contested the ruling, stating that he was not given adequate time to secure legal representation, having requested 30 days to do so. In addition to challenging the default judgment, he intends to file a parallel $2.5 billion damage suit against GLAS Trust and related entities in another US court.
He maintains that the $533 million in question was fully accounted for. Most of the funds—$479.62 million—were transferred from the loan manager OCI to Revere Capital, then to Byju’s entities, and finally to parent company Think & Learn Pvt Ltd (TLPL), which used the money for acquisitions worth $3 billion, including Aakash Educational Services.
Raveendran also highlighted that documents submitted by GLAS Trust in the legal proceedings confirm the money trail. He filed a motion in the Delaware Bankruptcy Court to correct what he calls a premature determination of damages. According to him, the court mistakenly treated a sanction for delayed document production as a damages award, even though GLAS Trust had withdrawn its request for damages in September, and no liability had been decided on the merits.
Calling the allegations “outrageous,” Raveendran said that the attacks affected Byju’s customers and employees and that GLAS Trust and the lenders would now face legal scrutiny.
The evidence Byju’s plans to submit includes bank records, email correspondence, and transfer trails obtained during US proceedings but not fully disclosed. Raveendran stated that this evidence will demonstrate that GLAS Trust and the Resolution Professional misled the courts and the public by falsely claiming the $533 million was diverted.
A litigation advisor for Raveendran added that since June, the Delaware Court had been misled by GLAS Trust, which claimed it did not know how the Alpha Loan proceeds were used. In fact, the funds were invested by Alpha and Think & Learn in the company’s shares. Raveendran further noted that GLAS Trust had repeatedly attacked the integrity of him and other founders over two years based on these false claims.
