A major legal blow has landed on BYJU’S founder Byju Raveendran, as a United States court has issued a default judgment holding him personally liable to repay more than USD 1 billion. The order was issued by the Delaware Bankruptcy Court after Raveendran allegedly failed to comply with multiple discovery orders in a case involving BYJU’s Alpha Inc. and US-based lender GLAS Trust Company LLC.
According to the court documents, the ruling was issued on November 20, and marks one of the most significant legal developments in the ongoing financial crisis surrounding the edtech giant.
The judgement states:
“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 court noted that Raveendran repeatedly ignored orders to provide financial records and responses related to the movement of loan funds tied to BYJU’s Alpha. Despite earlier warnings and monetary sanctions, including a penalty of USD 10,000 per day, the ruling says he “continued to refuse compliance.”
The Dispute Over Alpha Funds
BYJU’s Alpha was created in the US as part of the structure used while borrowing USD 1 billion (Term Loan B) from foreign lenders. The loan was raised for Think & Learn Private Limited — BYJU’S parent company — during the company’s expansion phase.
However, the lenders alleged that USD 533 million from the loan was moved out of the US in violation of agreement terms. That amount allegedly ended up routed through various entities, including one known as Camshaft Capital.
As the dispute escalated, the lenders — represented by GLAS Trust — sought legal intervention and were later granted control over BYJU’s Alpha. The matter then moved to the Delaware Bankruptcy Court, where both sides filed petitions to trace and audit the missing funds.
The recent court order specifically demands a “complete and precise account” of the Alpha Funds and any related proceeds or transfers. The judgement also states that the records currently available do not support Raveendran’s claim that lenders already have access to the information they seek.
Contempt and Escalation
What turned this case into a high-stakes ruling was the court’s finding that Raveendran’s lack of cooperation was not accidental, but intentional.
The order reads that his behaviour reflected:
“A strategic pattern of willful failure to comply with discovery.”
The judge also highlighted that the earlier sanctions — including the steep daily fines — had no visible effect, as Raveendran resides outside the US and “appears to have no intention of satisfying the penalties.”
This paved the way for the harsher step: a full default judgement.
Impact on BYJU’S and Next Steps
The ruling adds further pressure on the already embattled edtech company, which has seen a sharp decline from being India’s most valued startup to facing lawsuits, resignations, operational challenges, and insolvency proceedings.
While the judgment holds Raveendran personally liable, any recovery now depends on enforcement, which may involve asset tracing across jurisdictions including India, the UAE, and other countries where he may hold assets.
Raveendran and BYJU’S have not yet issued a detailed public response regarding this specific order, though the company has previously denied allegations related to missing funds and claimed that lenders were attempting an unlawful takeover.
The ruling now alters the tone of the case, shifting it from a loan dispute to a personal legal exposure of BYJU’S founder — a rare development in global startup litigation.