The Karnataka High Court has issued an interim injunction restraining Byju Raveendran, founder of Byju’s, and his investment firm Byju’s Investments Pte Ltd (BIPL), from selling, mortgaging, or transferring any of their assets. This order follows a petition by Qatar Holdings LLC, a subsidiary of the Qatar Investment Authority (QIA), seeking enforcement of a $235 million arbitration award in India
Background: The $235 Million Arbitration Claim
QIA originally lent $150 million to BIPL in 2022, backed by Raveendran’s personal guarantee and shares of Aakash Educational Services. When Byju’s allegedly transferred pledged shares to another entity under Raveendran’s control, QIA considered it a breach and terminated the agreement
Qatar Holdings pursued arbitration at the Singapore International Arbitration Centre (SIAC), winning a $235 million award plus 4% compounded daily interest, now amounting to over $249 million. An emergency freezing order on assets had already been enforced globally via Singaporean courts.
Court Rationale and Legal Proceedings
Presiding Judge Justice R. Nataraj noted that following QIA’s petition for asset restraint, it’s “appropriate that the respondents are put on terms” before objections are filed. Hence, an interim injunction was granted, preventing Raveendran and BIPL from alienating assets until the next hearing.Business Standard
Byju’s counsel requested more time to respond, citing delayed service of court documents, but the judge pressed ahead due to an existing undertaking by Raveendran to not transfer assets in other proceedings.
Broader Context: Byju’s Legal Woes
- The company is currently undergoing insolvency proceedings, triggered by a default of ₹158 crore to the Board of Control for Cricket in India
- In the U.S., Raveendran and other executives face serious allegations, including attempts to misappropriate $533 million tied to a term loan, in addition to being held in civil contempt for failing to comply with document production orders.
Summary Table
| Aspect | Details |
|---|---|
| Court | Karnataka High Court (Justice R. Nataraj) |
| Order | Interim injunction barring asset transfers |
| Claim | $235M SIAC arbitration award + interest |
| Underlying Dispute | Breach of loan terms relating to Aakash acquisition |
| Wider Issues | Insolvency, U.S. litigation, multiple creditor disputes |
Why This Matters
This legal development highlights the intensifying scrutiny on Byju’s troubled financial structure. The asset freeze limits Raveendran’s ability to restructure or liquidate holdings, potentially hampering recovery or restructuring strategies. It also underscores growing international legal entanglements and a deepening crisis for one of India’s once-celebrated unicorns.
