Byju Raveendran, founder of the embattled edtech firm Byju’s, announced plans to file a $2.5 billion damages claim against GLAS Trust and related parties, accusing them of misleading courts and the public over a disputed $533 million loan. The move comes days after a US bankruptcy court in Delaware issued a default judgment ordering Raveendran to pay over $1 billion for non-cooperation in locating funds from a 2021 $1.2 billion term loan taken by Byju’s US arm, Byju’s Alpha. Raveendran called the ruling premature, noting GLAS had withdrawn its damages request in September, and vowed to appeal while submitting new evidence showing the funds were properly invested in parent company Think & Learn Pvt Ltd (TLPL).
Years of litigation in US and Indian courts resulted from GLAS Trust, serving as trustee for lenders, alleging that the $533 million, known as Alpha Funds, was “round-tripped” or diverted by founders for personal advantage. Raveendran contests this, arguing that GLAS has complete visibility since April 2025 and that bank records, emails, and transfer trails show the money moved from Alpha through middlemen to TLPL for lawful expansions like the $3 billion acquisition of Aakash.
New Evidence Challenges GLAS Fund Diversion Allegations:
Raveendran’s legal team plans to present “clinching evidence” in Delaware court proving GLAS and Byju’s resolution professional (RP) concealed documents and made false sworn statements about missing funds. Documents from US proceedings show TLPL guaranteed the Alpha loan, and proceeds benefited the Think & Learn Group rather than being siphoned off. This evidence will support a full appeal of the November 20 order and the $2.5 billion suit for defamation, reputational harm, and business losses caused by what Raveendran calls a “coordinated conspiracy.”
The founders, including Divya Gokulnath, aim to file the suit within 30 days in relevant US courts, with similar claims prepared for India and other jurisdictions. Raveendran has filed a motion to correct the court’s “rushed” damages award, arguing no liability was established on merits. He blasted GLAS for two years of attacks on his integrity, saying customers and employees suffered from greed-driven false narratives.
Background of the $1.2 Billion Loan Dispute:
The saga traces to Byju’s Alpha’s 2021 term loan, secured by TLPL, amid the edtech’s aggressive US expansion. Lenders later claimed $533 million went missing after routing through opaque entities, sparking Delaware bankruptcy proceedings and India’s NCLAT insolvency against TLPL. A default sanction followed Raveendran’s alleged refusal to produce documents, leading to the $1.07 billion judgment. GLAS maintained no defense was offered, while Byju’s countered with proof of compliance under Indian law.
Indian courts have seen parallel battles, with Supreme Court dismissing Raveendran’s NCLAT plea recently. The RP now manages TLPL amid creditor pressures, but founders insist funds fueled growth, not theft.
Broader Implications for Byju’s and Creditors:
Success in the appeal or suit could expose GLAS to massive payouts and reopen judgments, vindicating Raveendran’s stance. Failure risks deepening Byju’s woes, already hit by valuation drops from $22 billion peak. Employees and users, loyal through turmoil, stand to gain clarity on leadership claims. GLAS has not responded to queries. As filings loom by year-end, the clash tests court scrutiny on lender transparency in cross-border disputes.
