BYJU’S Alpha sues Byju Raveendran, Divya Gokulnath over alleged ‘fraudulent transfer’ of $533M
The lawsuit, filed by BYJU’S Alpha on behalf of the Term Loan lenders, follows a February 28 ruling that found Riju Ravindran, BYJU’S, and Camshaft Fund committed multiple fraudulent transfers and conversions of $533 million in loan proceeds.
BYJU’S Alpha, a unit created by the embattled edtech firm BYJU’S in the US, has filed a lawsuit alleging that founder Byju Raveendran, co-founder Divya Gokulnath, and advisor Anita Kishore orchestrated and carried out a scheme to hide and misappropriate $533 million in loan proceeds.
“This is an action to hold three powerful BYJU’s executives accountable for having purposefully caused the Debtor (BYJU’S Alpha) to fraudulently transfer an asset valued at over half a billion dollars for no consideration,” stated the lawsuit filed on April 9, 2025.
The lawsuit, filed by BYJU’S Alpha in the US Bankruptcy Court for the District of Delaware on behalf of the Term Loan lenders, follows a February 28 ruling that found Riju Ravindran, BYJU’S, and Camshaft Fund to have committed multiple fraudulent transfers and conversions of $533 million in loan proceeds, and that Ravindran breached his fiduciary duties as a director of BYJU’S Alpha.
BYJU’S Alpha, a Delaware special purpose vehicle (SPV) created to receive proceeds from a $1.2 billion Term Loan B, was seized by creditors and placed under Chapter 11 bankruptcy after once controlling the $533 million in question.
The ad hoc group of BYJU’S Alpha’s term loan lenders stated that, following the Delaware Bankruptcy Court’s recent judgment against Ravindran and related entities, this lawsuit seeks to hold Raveendran—former CEO of BYJU’S Alpha—and two close associates accountable for masterminding the theft of over half a billion dollars.
“It is clear that Byju, Divya, and Anita deliberately hid the assets of BYJU’S Alpha and repeatedly were deceptive about the location of the money in order to steal funds rightfully owed to the Lenders. In light of the Court’s recent decision, there can be no doubt that they acted unlawfully and tried to cover their tracks, breaching fiduciary duties and making numerous misrepresentations, among other misconduct, in the process,” the lenders added.
The lenders allege that Byju, Divya, and Anita repeatedly misrepresented and contradicted themselves about the use and location of the $533 million in an effort to cover their tracks.
“The allegations made by GLAS in the recent lawsuit are completely baseless and untrue. This lawsuit is a part of their conspiracy to wrestle control of BYJU’S through all possible nefarious means,” BYJU’S founders said in a statement.
“It is nothing but yet another cog in the wheel of lies that GLAS, the illegal representative of disqualified lenders in the US, has been rotating for a long time now,” the statement added.
In the lawsuit filed on April 9, BYJU’S Alpha is seeking damages for Raveendran’s breach of fiduciary duties, as well as for his, Gokulnath’s, and Kishore’s role in aiding and abetting breaches by others.
The suit also demands an accounting of the $533 million of loan proceeds, damages for conversion and civil conspiracy, reimbursement of attorneys’ fees, costs, and interest expenses, and any other relief the Court deems appropriate.
In March 2022, BYJU’S Alpha defaulted on its credit agreement shortly after receiving the Term Loans, and BYJU’S, along with Raveendran and Ravindran, allegedly began a series of fraudulent transfers and later acknowledged the defaults through multiple amendments and forbearances.
BYJU’S, once hailed as India’s most valuable startup, is now facing bankruptcy proceedings in both India and the US.
(The article was updated with a statement by the founders of BYJU’S.)
Edited by Megha Reddy