Byju’s Faces New Roundtripping Allegations in Delaware Court; Founders Strongly Deny Claims

A new twist has emerged in the long-running financial battle around Byju’s, as a fresh filing in the Delaware Bankruptcy Court has alleged that the missing $533 million from Byju’s Alpha was “roundtripped right back” to founder Byju Raveendran and his affiliates. The filing claims that the disputed funds were not used for legitimate operational purposes and were instead transferred through opaque channels for personal benefit.

Byju’s founders have strongly denied these allegations, calling them misleading, selective, and devoid of factual basis.

Court Filing Claims $533 Million Was “Roundtripped”

The new allegations were submitted as Byju’s Alpha—now controlled by the company’s Term Loan B lenders—seeks approval for a settlement with OCI Limited, the UK-based procurement company that received most of the questioned funds.

As part of the settlement process, OCI’s founder, Oliver Chapman, submitted a sworn declaration that “itemises down to the cent” how the Alpha Funds were handled once received. The filing referencing this declaration alleges the following:

• The Alpha Funds were not used for legitimate commercial purposes, including the procurement of IT equipment, tablets, or advertising services for Think & Learn.

• The funds were allegedly moved through a chain of opaque transfers, ultimately directing the majority of the money to Byju’s Global Pte Ltd, a Singapore-based corporate entity allegedly owned by Raveendran.

• Chapman’s review reportedly showed that in 2022, $533 million was “clandestinely removed” with the intent to route the money into that Singapore entity.

The filing asserts that this movement of funds is evidence of personal enrichment, claiming:
“Raveendran’s plot was to siphon hundreds of millions of dollars of corporate assets for personal use.”

Additionally, the documents allege that former OCI representative Rupin Banker and others “abused OCI to facilitate a fraud on the Debtor and its creditors.”

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Byju’s Issues Strong Denial: “Selective and Misleading”

Byju’s founders issued a firm rebuttal in a media statement on November 17, calling the allegations “categorically and unequivocally false.” They said the court filing relies heavily on a selective and incomplete declaration from OCI’s CEO that ignores the full financial trail.

According to the founders:

• “No portion of the USD 533 million has been used by founders directly or indirectly.”

• The entire amount was used for the benefit of Think & Learn, supported by documents and bank statements.

• Oliver Chapman’s testimony includes “conjectures and selective insinuations” and does not substantiate any wrongdoing, they said.

The statement further added that GLAS Trust and the Resolution Professional already have complete access to all financial records, bank statements, and underlying documents of Think & Learn and its US subsidiaries.

Byju’s claimed:
“When the full money trail is available with them, presenting only half-truths is a deliberate strategy to sabotage the founders’ reputation.”

The company said it will soon submit a formal filing to counter every allegation made in the Delaware submission.

How the Saga Began: The Term Loan B Dispute?

The story dates back to November 2021, when Byju’s raised $1.2 billion through a Term Loan B via Byju’s Alpha. The funds were intended for major global acquisitions and aggressive expansion.

However, by mid-2023:

• Lenders alleged substantial breaches of the loan agreement,

• And claimed that around $500 million was missing from Byju’s Alpha.

In November 2023, the Delaware court ruled in favour of the lenders, giving them control over Byju’s Alpha.

Meanwhile, in India, the company was hit by increasing cash-flow issues. On June 16, 2024, the BCCI filed an insolvency petition against the firm over unpaid dues of ₹158 crore, triggering insolvency proceedings under India’s IBC.

What Happens Next?

The latest filing indicates that the Delaware legal dispute is far from over. With Byju’s preparing a detailed counter-submission and the court considering the settlement with OCI Limited, the case continues to unfold across multiple jurisdictions.

For now, the controversy surrounding the missing $533 million and the contrasting claims from both sides remains one of the most significant chapters in Byju’s ongoing financial crisis.

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