A new filing in a US bankruptcy court (Delaware) claims that troubled edtech giant Byju’s used a UK-based logistics/procurement firm, OCI Limited, to move around ~$505.9 million that originally came from its US lenders.
- Court documents and declarations claim this money was “round-tripped” back to entities linked to founder Byju Raveendran.
- Byju and his legal team have now issued a strong public denial, saying the story being pushed in media is misleading and incomplete.
What Is This $505–533 Million Drama?
The loan that started it all
- A US entity called Byju’s Alpha (a special purpose vehicle) took a $1.2 billion term loan from a group of US lenders.
- Later, when lenders checked Alpha’s accounts, they realised around $500+ million was missing from where it was supposed to be.
The alleged UK route – OCI Limited
According to multiple media reports based on Delaware court filings:
- A big chunk of the missing Alpha funds — roughly $505–533 million — was
- First moved to a Florida hedge fund called Camshaft Capital
- From there, sent to OCI Limited, a UK-based procurement/logistics company
- OCI’s founder Oliver Chapman has submitted a sworn declaration describing how the funds allegedly moved and claims that:
- The money did not go into genuine procurement (like tablets, inventory, advertising etc.)
- Instead, it was allegedly routed back to entities linked to Byju Raveendran and his affiliates
This is where the accusation of “round-tripping” comes in.
How the Flow of Funds Is Alleged to Have Worked
Based on filings and media summaries:
- Step 1: US lenders → Byju’s Alpha (SPV in the US) – $1.2B term loan
- Step 2: Alpha → Camshaft Capital (hedge fund in Florida) – a big part of the money moves out
- Step 3: Camshaft → OCI Limited (UK logistics/procurement firm) – about $505M+
- Step 4: OCI → Various entities allegedly connected to Byju and his affiliates, including a Singapore-based entity, as per the new declaration
- Filings say this structure made it hard for lenders to trace and claw back the money
Again, these are allegations from court documents and third-party statements, not proven criminal findings yet.
Why This Matters So Much
For lenders and creditors
- If the funds were really moved in a way that blocked recovery, it becomes a huge risk case study for global lenders funding Indian startups.
- The court may decide:
- How much can lenders recover
- Who is responsible for what
- Whether any further action (civil or criminal) is justified in different jurisdictions
For corporate governance in Indian startups
- This case is already being used as a warning story about:
- Complex offshore structures
- Weak board oversight
- Aggressive debt-funded expansion without strong internal controls
- For Indian founders, it’s a live example of how global money + weak compliance = time bomb.
Byju’s Official Stand: “These Allegations Are Misleading”
After this fresh wave of media reports, Byju Raveendran’s international legal team (Lazareff Le Bars, Paris) has put out a detailed statement.
Let’s break their key points in simple language:
“The case is NOT against me personally”
- The latest Delaware filing is between GLAS Trust (lenders’ agent) and certain entities, not directly against Byju as an individual.
- The statement stresses that he is not a party to that specific motion which media is heavily quoting.
“GLAS Trust already knows where the money went”
Byju’s lawyers argue that GLAS Trust is misleading the Court by pretending the money trail is unclear:
They claim:
- Contracts have already been submitted
- Reconciliation documents are being prepared / given
- Email and data trails exist
- And most importantly – GLAS Trust is currently in control of Think & Learn (TLL), so they already have access to the accounts and records.
“Funds were used inside Think & Learn, not for personal gain”
The legal team says:
- The Alpha loan funds were used within BYJU’S / Think & Learn,
- Not siphoned for personal use of founders
- They insist that previous transfers were contractual and compliant, meant for global expansion and operations.
“Resolution Professional (RP) & GLAS are hiding key facts”
According to the statement:
- The Resolution Professional (RP) handling insolvency in India is allegedly not cooperating
- GLAS Trust is accused of cherry-picking information and creating a narrative that suits their enforcement strategy
“A massive counter-lawsuit is in the works”
The statement also mentions:
- A counter-claim of around $2.5 billion is being prepared against certain parties
- The idea seems to be: attack back, claim damages and reputational harm if the lenders’ side is proven to have acted wrongly.
“No court has ordered Byju or Divya to pay anything (yet)”
- The legal team clearly highlights that no court in India or the US has passed any order directing:
- Byju Raveendran, or
- Divya Gokulnath
to pay any amount to Alpha Inc. or Think & Learn at this stage.
So legally, as of now:
- These are allegations and counter-allegations,
- Not a final judgment on guilt or fraud.
Two Narratives Right Now
Byju’s / Founder Side Says:
- Money was used inside the company, not in personal pockets
- GLAS Trust and others are:
- Hiding full context
- Misleading the court
- Ignoring documents already filed
- RP is non-cooperative
- They are preparing a multi-billion dollar counter-suit
Lenders / Filings Side Says:
- Fund trail is suspicious and unclear
- OCI relationship and structure raise questions
- Alpha loan money may have been misused or diverted
- They want the court to recognise this and help them recover value
