BYJU’S Alpha's missing $533M: Outsourcing co CEO alleges roundtripping in sworn declaration

In a new development in the long-running dispute over the missing $533 million from BYJU’S Alpha, a fresh filing by GLAS Trust in the Delaware Bankruptcy Court laid out how the funds were allegedly handled and highlighted inconsistencies with Byju Raveendran’s earlier public statements.

However, a statement issued on November 17, on behalf of the founders of BYJU'S parent Think and Learn Private Limited, “categorically and unequivocally reject the allegations made in GLAS Trust’s latest filing.”

A recently submitted court motion revealed that Oliver Chapman, Chief Executive of OCI Limited, a UK-based supply chain procurement firm to which the $533 million was ultimately transferred, has provided a sworn declaration describing how the money was routed. 

According to the filing, Chapman alleged the funds were not used for hardware or advertising purchases, as previously claimed, but were “in effect, roundtripped right back to Byju Raveendran and his affiliates,” contradicting the founder’s sworn testimony.

Chapman further declared in the court filing that the transfers were structured so that the “vast majority” of the Alpha Funds were intended to be moved through a series of opaque transactions to a Singapore corporate vehicle owned by Raveendran. The declaration points to a deliberate attempt to move corporate assets for private benefit.

However, BYJU'S founders reject these allegations.

“....GLAS Trust’s latest filing in the Delaware proceedings, which relies heavily on a selective and incomplete declaration submitted by Mr. Oliver Chapman, CEO of OCI Limited. Mr. Chapman’s testimony is full of conjectures and selective insinuations and does not substantiate any claim of wrongdoing by the founders of BYJU’S. At most, his declaration reflects his limited knowledge of specific expenditures undertaken by OCI; it does not establish any diversion of funds by the founders,” noted their statement.

This claim, in the US court filings, stands out because it contradicts Raveendran's sworn declaration he filed with the same court in October 2024. In that affidavit, he asserted that the money had been sent to OCI for “legitimate commercial purposes” and that the transfers were made to procure “services to T&L and its subsidiaries in relation to the procurement of IT equipment, such as electronic tablets, and advertising, including marketing via various media.” He concluded the declaration by expressing hope that it “dispels any notion that I or any of the founding members of BYJU’S siphoned these funds for personal gain.”

The founders noted in their rebuttal, “No portion of the $533 million in question has been used by founders directly or indirectly. The said amount has been used in its entirety for the benefit of Think and learn as evidenced in documents and bank statements.” The statement added that “forthcoming filing will provide the Court with evidence rebutting each of the assertions made in the recent GLAS Trust submission.”

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BYJU’S Alpha, which was established in Delaware as the special purpose vehicle to receive the term loan proceeds and is now controlled by its lenders, sued OCI and its former representative, Rupin Banker, earlier this year in an attempt to recover the missing money.

As part of the settlement process, the debtor filed Chapman’s sworn declaration and has indicated it will discontinue further proceedings against OCI while continuing to pursue claims against other defendants.

The Chapman testimony comes as BYJU'S and its debtors are embroiled in a tense US legal process. In July, the US Bankruptcy Court in Delaware held Raveendran in civil contempt for failing to comply with earlier discovery orders. The court imposed daily fines of $10,000 until he met its limited expedited discovery demands, indicating mounting frustration at repeated failures to produce material considered essential for resolving the case.

The Delaware filings state that documents in OCI’s possession itemise “down to the cent” how the Alpha Funds were handled and assert that the money was not used for the corporate procurement activities Raveendran described in his 2024 declaration.

“When the full money trail is available with them (GLAS Trust and the Resolution Professional), presenting only half-truths is not an accident—it is a deliberate strategy to sabotage the founders’ reputation,” the founders' statement said.

Meanwhile, in India, the litigation continues to reverberate across multiple legal forums. BYJU’S and its promoters face insolvency proceedings, regulatory and contractual disputes, and a growing number of claims from creditors and commercial partners.

The founders have publicly denied wrongdoing and, in July, mentioned plans to launch a multijurisdictional suit seeking at least $2.5 billion in damages against lenders and investors they argue have harmed the company’s performance and reputation.

Insolvency tribunals and appellate courts have been actively involved in related matters. Proceedings have moved between the National Company Law Tribunal (NCLT), the National Company Law Appellate Tribunal, and the Supreme Court, with stakeholders contesting matters of control, creditor rights, and the validity of earlier settlements.

Recent filings by BYJU’S co-founder Riju Ravindran at the NCLT have tangled the case further. His applications challenge elements of the lenders’ enforcement actions, raise objections to the treatment of specific financing arrangements and allege regulatory irregularities in the lenders’ approach.

At the same time, the NCLT-administered asset sale process has attracted growing interest from education groups. Edtech firm upGrad and the Manipal Group have submitted expressions of interest for parts of BYJU’S operations, including digital assets.

(This article was updated to reflect a statement issued on November 17, on behalf of the founders of Think and Learn Private Limited)