A Delaware Bankruptcy Court has issued a default judgment holding Byju’s founder Byju Raveendran personally liable for more than $1 billion, citing repeated violations of discovery orders linked to the long-running dispute over funds moved from BYJU’s Alpha.
According to the judgment dated November 20, 2025, the court concluded that Raveendran had “failed to comply” with mandated disclosures and had been “evasive on several occasions.”
“The court will enter default judgment against Defendant Raveendran…in the amount of USD 533,000,000, and on Counts II, V and VI in the amount of USD 540,647,109.29,” the order stated.
Court Slams ‘Strategic Pattern’ of Non-Compliance
The court noted that it had repeatedly instructed Raveendran to provide details regarding the Alpha Funds and all related transfers, including assets such as the Camshaft LP Interest. The order directed him to submit a “full and accurate accounting” of all proceeds and subsequent transfers.
The court observed: “The facts and circumstances of this case indicate that Raveendran’s continuing failure to adequately respond to the pending discovery requests is a personal decision by Raveendran, himself.”
Earlier, the court had issued a contempt order and imposed $10,000 per day in sanctions until he complied. However, it said the fines had been ineffective because “Raveendran lives abroad and apparently has no intention of satisfying his financial penalties or complying with the discovery orders.”
Read More – Maruti Suzuki Invests ₹2 Crore in Connected Mobility Startup
Background: The Dispute Over $533 Million
BYJU’s Alpha was created when Raveendran oversaw operations of Think and Learn Pvt Ltd (TLPL), the parent company behind the Byju’s brand.
TLPL had raised a $1 billion Term Loan B from a consortium of US lenders. Those lenders, represented by US-based GLAS Trust Company LLC, alleged that $533 million had been illegitimately transferred out of the US in violation of the loan terms.
GLAS Trust then secured an earlier order to take control of BYJU’s Alpha. Both BYJU’s Alpha and GLAS later approached the Delaware Bankruptcy Court seeking discovery of the missing funds and related transactions.
Court Rejects Raveendran’s Arguments
Raveendran argued that GLAS Trust already had access to documents through BYJU’s Alpha’s records. The court disagreed, stating there was “nothing in the record to support the assertion GLAS has access to relevant documents.”
It further noted: “The court has also found that Raveendran’s behaviour has been a strategic pattern of willful failure to comply with discovery.”
No Immediate Response From Raveendran
An email sent to Raveendran’s authorized agency seeking comments did not elicit an immediate response.
With the default judgment now in place, the ruling significantly escalates the legal and financial pressure on the Byju’s founder as the company continues to face heightened scrutiny
from creditors and regulators.
(With Inputs From PTI)
