Byju’s Legal Battle Intensifies Over Alleged Unofficial Payments

In a recent development that has caught the attention of the global business community, Byju’s founders are preparing to launch legal proceedings seeking damages of at least $2.5 billion. This comes after allegations surfaced in a US bankruptcy court regarding unofficial payments to high-ranking Indian officials.

Details of the Allegations

During a hearing at the US Bankruptcy Court for the District of Delaware, a lawyer representing Glas Trust Company, which acts for lenders to Byju’s Alpha Inc., claimed that founder Byju Raveendran was in discussions to make private payments in connection with regulatory penalties. No evidence was presented to support these claims.

Byju’s Response

The founders of Byju’s, through their legal representation, have vehemently denied these allegations, labeling the conduct of Alpha, Glas Trust, and its counsel as reprehensible and improper. They have announced plans to seek justice and compensation across multiple jurisdictions, including India.

Regulatory Scrutiny

This controversy unfolds as Byju’s faces ongoing scrutiny from regulatory bodies, including a significant notice from the Enforcement Directorate for alleged violations under the Foreign Exchange Management Act.