Byju’s Faces $2.5 Billion Lawsuit as Legal Battle Intensifies
Byju’s founders, Byju Raveendran and Divya Gokulnath, are gearing up for a significant legal battle, planning a $2.5 billion lawsuit both in India and internationally. This move comes as the edtech company faces insolvency proceedings and a contentious dispute with Glas Trust, the trustee representing its Term Loan B lenders. The founders aim to hold accountable those they believe have damaged their reputation and business interests, including their company Think & Learn.
Legal Action Against Glas Trust
The legal counsel for Byju’s founders has announced their intention to pursue claims against Glas Trust and its representatives. Glas Trust is currently acting as the trustee for lenders to whom Byju’s owes $1.2 billion. The founders contest the authority of Glas Trust, arguing that it represents only a fraction—17.38%—of the voting rights within the consortium of lenders. They have already initiated legal proceedings in India against Glas Trust and a former subsidiary of Think & Learn, which Glas Trust claims to control. The founders are preparing to expand their legal efforts to other jurisdictions, with the lawsuits expected to seek damages of at least $2.5 billion.
Insolvency Proceedings and Challenges
Byju’s is currently undergoing insolvency proceedings initiated by Glas Trust. Although the National Company Law Appellate Tribunal (NCLAT) previously dismissed the case following an appeal from the Board of Control for Cricket in India (BCCI), Glas Trust has since approached the Supreme Court. The Supreme Court has allowed the Corporate Insolvency Resolution Process (CIRP) to proceed. In response, Byju’s founders are contesting the insolvency case and have filed a plea to remove the Interim Resolution Professional, citing a conflict of interest due to ties with consultancy firm EY, which is also associated with Glas Trust.
Allegations of Misappropriation
In a related development, Glas Trust has gained control of Byju’s Alpha, a special-purpose financing vehicle established to manage Term Loan B funds. Byju’s Alpha has filed a lawsuit against Raveendran, Gokulnath, and senior executive Anita Kishore, accusing them of orchestrating a scheme to conceal and misappropriate $533 million of loan proceeds. The founders’ legal team has clarified that no court, either in India or the United States, has mandated any payments from Raveendran or Gokulnath to Think & Learn or its affiliates.
Ongoing Legal Proceedings
Currently, Raveendran is involved in legal proceedings in a Delaware court, which commenced in April 2025. He has challenged the court’s jurisdiction and denied all allegations against him. Additionally, he is seeking a reconsideration of a civil contempt order issued on July 7, 2025, concerning the disclosure of specific information that he asserts is already under review in Indian courts. His legal team has stated that the civil contempt order pertains to requests for information that overlap with matters currently before Indian courts, and they are actively addressing these issues.
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