The Karnataka High Court has ordered Byju Raveendran, founder of embattled edtech firm Byju’s, not to sell, transfer, or encumber his assets. The interim injunction came in response to a petition filed by Qatar Holdings LLC, which is seeking to enforce a $235 million arbitral award in India.
Background of the Dispute
The case traces back to September 2022, when Qatar Holdings, a subsidiary of the Qatar Investment Authority, lent $150 million to Byju’s Investments Pte Ltd (BIPL). The loan was personally guaranteed by Raveendran and intended to fund the acquisition of shares in Aakash Educational Services Ltd.
Alleged Violation of Loan Terms
Under the financing agreement, the shares acquired with the loan could not be transferred. However, the shares were later moved to another Singapore-based company controlled by Raveendran, allegedly breaching the terms. After repeated defaults, Qatar Holdings cancelled the deal and demanded repayment of $235 million, including interest and penalties.
Arbitration in Singapore
Qatar Holdings initiated arbitration at the Singapore International Arbitration Centre (SIAC). In March 2024, an emergency arbitrator ordered a global freeze of assets linked to Raveendran and BIPL. In July, SIAC directed immediate repayment of $235 million plus 4% daily compounded interest, pushing the outstanding amount above $249 million.
Qatar Holdings Moves in Indian Courts
Following the Singapore rulings, Qatar Holdings approached the Karnataka High Court to secure Indian assets. Its counsel requested an injunction to prevent asset transfers and sought the attachment or sale of Raveendran’s properties in India. Raveendran’s counsel, however, argued that the petition had not been served and asked for time to respond.
Byju’s Legal Position
Rishab Gupta, appearing for Raveendran, told the court that the arbitral award is being challenged in Singapore. He added that Byju’s was willing to give an undertaking not to alienate assets until the next hearing. The High Court has restrained any transfer of assets until further orders.
Growing Troubles for Byju’s
This case adds to a string of legal and financial challenges facing Byju’s. In June 2024, the company was dragged into insolvency proceedings after defaulting on payments linked to a jersey sponsorship with the Board of Control for Cricket in India. In the US, Raveendran and family members face allegations of siphoning $533 million from Byju’s Alpha Inc., with proceedings underway in the Delaware Bankruptcy Court.
From Unicorn to Crisis
Founded in 2011 by Raveendran and his wife Divya Gokulnath, Byju’s grew into one of India’s most celebrated startups, attracting billions in global funding. But its aggressive expansion, rising debts, and regulatory disputes have since eroded its standing, turning the onetime edtech unicorn into a cautionary tale of overreach.
