Byju's Former Billionaire Founder Ordered To Pay Over $1 Billion As US Court Slams ‘Breathtaking’ Obstruction
The Delaware Court ruling also notes that monetary contempt penalties ordered at $10,000 per day remain unpaid and have reached hundreds of thousands of dollars.
A United States Bankruptcy Court in Delaware has entered a default judgment ordering Byju Raveendran to pay more than $1 billion in damages in litigation connected to allegations involving transfers of funds tied to Byju's Alpha. The ruling follows findings that Raveendran failed to comply with multiple expedited discovery orders in the case.
The court awarded $533 million on one claim and $540,647,109.29 on others, bringing the total to more than $1.07 billion. The ruling also notes that monetary contempt penalties ordered at $10,000 per day remain unpaid and have reached hundreds of thousands of dollars.
Raveendran built his profile during the Covid-19 period as demand for online learning increased. Byju's secured major sponsorships, including the Indian cricket team jersey and a global ambassador partnership with Lionel Messi ahead of the FIFA World Cup. The visibility of those deals and rapid expansion lifted his personal wealth and positioned the company as a high-growth brand.
In recent years, however, the business faced significant financial pressure and a sharp decline, with disputes and legal challenges intensifying around the company’s debt structure and governance issues.
The judgment, issued in proceedings filed in April 2025, ordered Raveendran to pay $540,647,109.29 to Byju's Alpha, which represents the interests of the term loan lenders. The ruling also states that he owes hundreds of thousands of dollars in accumulated contempt sanctions.
Allegations And Discovery Dispute
The adversary proceeding was filed in April 2025 as part of efforts by Byju's Alpha to recover assets including the $533 million described by the court as the “Alpha Funds.” The action asserts claims against Raveendran, Divya Gokulnath and Anita Kishore for breach of fiduciary duty, aiding and abetting breach of fiduciary duty, accounting, conversion and civil conspiracy.
The court found that Raveendran repeatedly failed to comply with discovery requirements, despite extensions and warnings. At a hearing, the judge said the proceedings showed “a consistent effort to delay and obfuscate” and referred to the conduct as “breathtaking” in relation to discovery failures.
The order also states that the court had determined that the discovery responses produced were “not even remotely satisfactory or consistent with what the Court would expect a legitimate and good faith document production would be.”
Court Observations
The ruling rejected arguments that United States courts lacked jurisdiction over Raveendran, stating that “Mr. Raveendran’s conduct that gives rise to the litigation here relates to his activities … in the United States fundraising and serving as a director, officer, or manager of a United States corporation.”
“The Court acknowledges that the relief granted herein is extraordinary. But the circumstances of this case are, frankly, unique and unlike anything the undersigned has encountered before, thereby making such relief in this case richly warranted,” the court said during its default judgement.
Claims Dismissed
The court awarded $533 million on the claim related to aiding and abetting breach of fiduciary duty connected to the transfer of funds to the Camshaft Fund.
The court separately awarded $540,647,109.29 on claims connected to the transfer of Camshaft LP interest in 2023, including breach of fiduciary duty, conversion and civil conspiracy.
A contempt order issued on July 7 imposed sanctions of $10,000 per day until compliance, and the ruling notes that no funds have been paid. The decision directs Raveendran to provide a full accounting of the Alpha Funds and any proceeds thereof.
Byju's did not respond to NDTV Profit's request for a comment at the time of publishing this story.
