The Delaware court’s default judgment stems from Raveendran’s refusal to cooperate with discovery efforts and repeated failures to attend hearings, according to court documents reviewed by the Financial Times. Earlier this year, the judge imposed a $10,000-a-day penalty for contempt, which has since accumulated into hundreds of thousands of dollars. In his latest ruling, Judge Brendan Shannon described the $1.07 billion relief—including accumulated daily penalties—as “extraordinary” but warranted given the circumstances, noting that Raveendran lives abroad and shows no intention of complying with the court’s orders. Parties involved have seven days to respond to the order.
The dispute traces back to a $1.2 billion U.S. term loan issued in 2021, with creditors alleging that Raveendran, his co-founder wife, and another associate “masterminded the theft” of $533 million in proceeds. Byju’s founders have denied the allegations, calling them “completely baseless and untrue.” Legal filings indicate that funds were transferred to a Miami hedge fund and then moved out of the U.S. via a UK company. A February ruling had already found evidence of “fraudulent transfer” by Byju’s entities and associates.
Once valued at $22 billion, Byju’s attracted investments from major global investors such as BlackRock and Prosus, using funds for global expansion, sponsorships, and marketing campaigns including the FIFA World Cup and India’s national cricket team. Financial troubles emerged after global liquidity tightened, leading to default claims on the U.S. loan and sparking transnational litigation. The company also faces insolvency proceedings in India and scrutiny over aggressive sales practices, raising broader concerns about corporate governance, as detailed by the Financial Times.
