US court rules against Byju’s; finds founder guilty of fraud

Byju's Alpha emerged as a US-based subsidiary of Byju's in 2021 to handle financial operations from its $1.5 billion loan. The company defaulted on its loan obligations which resulted in legal disputes with its lenders. Byju Raveendran and his brother Riju Ravindran together with Camshaft Capital Fund and Byju’s parent company Think & Learn received a negative decision from the US Bankruptcy Court in Delaware on February 28, 2025. A court convicted the defendants of fraud because they moved $533 million illegally from Byju’s Alpha. The court classified these transactions as theft because the funds were transferred to Camshaft Capital Fund which investigators determined was a fake entity. Riju Ravindran breached his director responsibilities through court determination by permitting fraudulent financial transfers.

False financial activities from Byju’s

The lenders of BYJU'S $1.2 billion term loan said in their March 1 The Economic Times article that the United States (US) bankruptcy court in Delaware issued a ruling which held Riju Ravindran, Byju Raveendran, the Camshaft Capital Fund, and Think & Learn responsible for stealing money from the US entity BYJU'S Alpha Inc. and its lenders. The legal system confirmed that false financial activities from BYJU'S Alpha qualified as theft according to the lenders' perspective.

The court noted how Alpha's owners and business team failed to disclose financial information while also failing to submit financial reports about capital transfers and ignoring important requests from lenders.The company's debt default led to BYJU'S Alpha filing for bankruptcy in the United States during February.  

Here is what Raveendran has to say

Byju Raveendran announced on LinkedIn four days ago that he is the Byju from BYJU'S and he is present at this time. I should have come earlier to this situation. The business expansion consumed my attention so intensely that I failed to notice what was happening. My focus at that time centered on maintaining the business establishment I had built. I have been trying to reach you personally for a very long time. The truth and justice I anticipated would prevail had not materialized yet. I don't want to wait for today. I can't wait for today."

Keralan teacher and engineer Raveendran initiated child education in Bengaluru during 2005. The classes gained widespread popularity from the beginning. He transformed his business operations into a digital learning platform that became one of the most prominent EdTech companies in India.

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