The US Bankruptcy Court for the District of Delaware on Friday determined that Byju’s suspended director Riju Ravindran, founder Byju Raveendran, hedge fund Camshaft Capital Fund, and the parent company Think & Learn are responsible for defrauding its US entity, Byju’s Alpha Inc, and its lenders.

This development was announced by the lenders of Byju's $1.2 billion term loan. They stated that the court confirmed that several fund transfers from Alpha were fraudulent and amounted to theft. It also ruled that Riju Ravindran had breached his duties as a director of Byju’s Alpha.

The judge said the edtech firm and founders hid the whereabouts of the Alpha Funds. They also failed to provide financial statements or basic information requested by the lenders.

In India, Glas Trust, which represents the US lenders, is taking legal action against the edtech company in the National Company Law Tribunal (NCLT).

Byju Raveendran’s accusation

Raveendran has asked the authorities to carry out a “thorough investigation” into alleged collusion and fraud involving Glas Trust, consultancy firm EY, and former resolution professional (RP) Pankaj Srivastava.

This follows a viral LinkedIn post by an EY India whistleblower, claiming the audit firm collaborated with Glas Trust and was hired by Srivastava to advise on the insolvency proceedings. The whistleblower shared documents claiming EY was hired by Srivastava for "support services to the IRP" but did not reveal it was working with Glas...

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