New York: Edtech giant BYJU’S has suffered yet another major setback. The Delaware Chancery Court in the United States has ordered the company to pay more than $1.07 billion (approximately ₹9,600 crore) after finding serious financial irregularities involving its U.S. financing arm, BYJU’S Alpha.
The court concluded that BYJU’S concealed the withdrawal of funds from BYJU’S Alpha, leading to the massive penalty. The ruling comes at a time when the company, founded by Kerala-born entrepreneur Byju Raveendran, is already facing multiple legal and financial crises.
The U.S. court imposed the penalty through a default judgment, which typically occurs when a party fails to participate in legal proceedings or ignores court orders. Reports indicate that Judge Brendan Shannon issued the judgment after BYJU’S repeatedly failed to appear before the court and did not submit required documents.
The case centers on a transfer of $533 million from BYJU’S Alpha to Miami-based hedge fund Camshaft Capital. The court found that the funds were later moved through affiliated entities and held Byju Raveendran personally liable for the transaction. The total penalty includes $533 million for breach of trust and an additional $540.6 million for conversion, civil conspiracy, and related charges.
Reacting to the verdict, Byju Raveendran stated that the court’s observations were incorrect and announced plans to file an appeal against the ruling.
