A new court filing alleges that the Indian ed-tech giant Byju’s used a UK logistics firm as part of a scheme to divert approximately $505.9 million away from U.S. lenders.
What the Allegation Says
According to a recent U.S. court filing, Byju’s (formally Think & Learn Private Ltd) is accused of routing roughly $505.9 million through a UK-based logistics company, OCI Limited, to hide the money from its U.S. lenders.
The filing states that OCI accused a former adviser of collaborating with Byju’s founder, Byju Raveendran, to transfer the funds in and out of OCI’s business “as part of a plan … to block lenders from clawing it back.”
OCI’s founder, Oliver Chapman, stated in a sworn declaration that the funds were funneled to a Singapore-based entity owned by Raveendran rather than being used for legitimate procurement of equipment and services, as claimed.
The Flow of Funds
- The money originated from a U.S. loan facility (~$1.2 billion) taken out by Byju’s Alpha, a U.S. shell entity.
- Some portion (~$505.9 million) is alleged to have been transferred to OCI Limited via the UK logistics structure.
- The funds were then reportedly “round-tripped” into a Singapore entity linked to the Byju’s founder rather than being deployed as originally stated.
Why It Matters
- Creditor Risk: The allegation that Byju’s hid $505 million raises major concerns for lenders, creditors and stakeholders seeking to recover funds.
- Legal & Reputational Impact: If proven, the case might expose Byju’s and its founder to regulatory, bankruptcy and civil litigation risks.
- Corporate Governance: The case highlights governance, transparency and cross-border fund movement risks within high-growth tech companies.
- Global Scale: Given that funds moved across India, UK, Singapore and the U.S., the case underscores how globally-connected fintech and ed-tech firms must manage multi-jurisdictional oversight.
Response & Background
Byju’s has previously denied similar allegations that it hid ~$500 million in U.S. filings, stating that transfers were compliant with contractual arrangements and used for global growth.
The latest filing also references earlier claims that Raveendran attempted to regain control of Byju’s using hidden funds, via intermediaries and offshore trusts.
Next Steps & Considerations
- The U.S. bankruptcy court overseeing Byju’s Alpha (in Delaware) may evaluate settlement proposals with OCI Limited and other parties. Bloomberg Law
- For Indian stakeholders (employees, investors, regulators), the cross-border nature of the alleged funds movement will likely trigger compliance and audit reviews.
- Analysts will watch whether this case affects Byju’s restructuring, asset sales or creditor recovery strategy.
- Investors and ed-tech observers should monitor how this impacts confidence in high-growth, debt-financed ed-tech firms.
After the latest news storm, we finally have an official statement from Byju Raveendran’s international legal team, Lazareff Le Bars (Paris).
And it’s a strong denial.
1. “These allegations are NOT against me personally.” – Byju
The press release clearly says:
- The recent Delaware Court filing does NOT make allegations directly against Byju.
- The case is between GLAS Trust (the lender) and certain entities — not him personally.
- He is not a party to that specific filing where allegations were quoted by the media.
2. “GLAS Trust is misleading the Court.”
Byju’s lawyers claim:
- GLAS Trust keeps saying “we don’t know where the Alpha loan money went”
- But according to Byju, GLAS already has the full information
- Because:
- Contracts were already submitted
- Reconciliation documents are being prepared
- Email/data trails exist
- And GLAS Trust controls Think & Learn (TLL) right now, so they have access to all accounts
3. “Funds were NOT used for personal gain.”
The statement clearly says:
- The Alpha loan money was NOT used by any founder personally
- It was used inside Think & Learn (BYJU’s India entity)
- And GLAS Trust already knew this
4. Resolution Professional (RP) under question
Byju’s team claims the RP has:
- Refused to share key documents with the US Court
- Not questioned GLAS Trust’s claims
- Allowed additional debt during bankruptcy (which they say violates Indian law)
- Not addressed “serious concerns” about how GLAS became a creditor
5. “We will sue GLAS Trust — $2.5 billion+ claim coming.”
Byju’s team says:
- They will file racketeering and obstruction of justice claims in the US
- Value of claim: $2.5 billion+
- Filing expected before mid-December 2025
- Multiple jurisdictions will be involved
6. “There is NO Court order demanding Byju or Divya to pay anything.”
- No Court in India or US has ordered:
- Byju
- or Divya
to pay any amount to Think & Learn or Alpha Inc.
Earlier, leaked filings suggested:
- $505M was sent to a UK logistics company
- The company was allegedly linked to an investor
- The structure looked suspicious
- Media interpreted it as “possible fund diversion”
Now, after this new official statement, the situation shifts:
Byju’s stance:
- Money was used by Think & Learn
- Not personally by founders
- GLAS Trust is hiding information
- RP is not cooperating
- Documents proving fund usage have already been submitted
GLAS Trust’s stance (earlier filings):
- Fund trail unclear
- Supplier relationship questionable
- Alpha loan money possibly misused
- Action required in Delaware Court
After widespread reports about alleged misuse of $505 million routed to a UK supplier, Byju Raveendran has now issued a strong denial through his French legal team.
They claim:
- The funds were used inside BYJU’S (TLL), not personally
- GLAS Trust is misleading the Delaware Court
- Key documents exist and were already submitted
- A massive $2.5 billion counter-lawsuit is being prepared
- The Resolution Professional’s conduct is questionable
And most importantly:
No Court has ordered Byju or Divya to pay any amount.
