Byju Raveendran, the founder of the beleaguered EdTech company BYJU’S, is facing accusations of attempting to conceal millions of dollars in loan funds in a secret effort to buy back a software company taken over by a trustee. This action was allegedly part of Raveendran’s plan to regain control of his troubled company, which is grappling with bankruptcy in India and mounting legal issues in the United States.
According to recent court filings reported by Bloomberg, Raveendran is accused of hiding millions of dollars in loan proceeds with OCI Ltd, a UK-based logistics company, while falsely claiming the funds were spent. The loan money, which should have been used to pay creditors, was allegedly diverted in a bid to help Raveendran regain influence over BYJU’S.
To facilitate this move, Raveendran allegedly enlisted Nebraska businessman William R. Hailer, a former political consultant, to help buy out BYJU’S creditors, to whom the company owes over $1.2 billion. As part of this arrangement, Raveendran reportedly transferred $11.25 million to Rose Lake Inc., a firm controlled by Hailer, to demonstrate his financial capacity to lenders. The plan, however, involved returning the funds to Raveendran after the transaction.
The accusations add to a series of legal battles BYJU’S has been fighting in both state and federal courts for over a year. Lenders claim Raveendran concealed $533 million in loan proceeds that were owed to them. Meanwhile, in India, the company is facing insolvency proceedings, with a court-appointed professional tasked with recovering funds to repay its creditors.