US bankruptcy court says BYJU’S, Riju Ravindran, Camshaft defrauded lenders

A US bankruptcy court has found that Indian edtech firm BYJU'S' parent Think & Learn Pvt Ltd, Riju Ravindran—the brother of its founder Byju Raveendran, and others defrauded US-based lenders to BYJU’S Alpha, Inc.

Judge John TDorsey of the US Bankruptcy Court for the District of Delaware granted a summary judgment in favour of BYJU’s Alpha while also holding Camshaft Capital Fund and its affiliates responsible for orchestrating and executing an unlawful scheme that defrauded the Lenders.

The steering committee of the ad hoc group of lenders of the $1.5-billion Term Loan B said in a press release that the court is expected to award damages at a later date.

The court confirmed that the multiple transfers of funds from BYJU’s Alpha constituted actual fraudulent transfers and conversions (i.e., theft). The court also confirmed that Riju Ravindran "violated his fiduciary duties" as a director of BYJU’s Alpha.

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“We are gratified (that) the court unequivocally recognized that Riju Ravindran, Camshaft, and BYJU’S together conducted a deliberate fraud on a global scale arising from the theft of $533 million. This is a significant step forward in the Lenders’ efforts to recover the stolen funds that are rightfully owed to them,” the lenders said.

(The story will be updated with further details.)