NEW DELHI: Byju’s, the Indian edtech giant, is currently embroiled in a series of legal confrontations with GLAS Trust Company LLC, a representative of its US lenders.
The disputes centre around allegations of financial mismanagement and control over the company’s US subsidiary,
In 2021, Byju’s secured a $1.2 billion term loan through its US-based subsidiary, Byju’s Alpha Inc., with GLAS Trust acting as the administrative agent for the lenders.
Subsequent disagreements emerged over the management and utilisation of these funds, leading to legal actions in both the United States and India.​
GLAS Trust’s allegations
GLAS Trust has accused Byju’s founder, Byju Raveendran, co-founder Divya Gokulnath, and senior executive Anita Kishore of orchestrating a scheme to divert $533 million from the loan proceeds into an obscure fund named Camshaft Capital.
They allege that this maneuvre was intended to misappropriate funds rightfully owed to the lenders. In February 2025, the US Bankruptcy Court for the District of Delaware ruled that these actions constituted fraudulent transfers and conversion, holding the defendants accountable for the alleged misconduct. ​
Byju’s founders’ response
In response, Byju’s founders have vehemently denied these claims, labeling them as “completely baseless and untrue.” They contend that the lawsuit is part of a broader conspiracy by GLAS Trust to wrest control of Byju’s through nefarious means.
The founders assert that they have provided detailed affidavits accounting for the expenditure of the loan down to the last dollar, which they claim have been overlooked by GLAS Trust. ​
Escalating the conflict, Byju Raveendran recently filed a First Information Report (FIR) in India against the former resolution professional, GLAS Trust, and certain employees of Ernst & Young (EY).
The FIR alleges a criminal conspiracy aimed at undermining the company’s management and operations. ​
The legal battles have extended to India’s judiciary, with the Supreme Court reinstating insolvency proceedings against Byju’s following appeals from US lenders. These developments have intensified the scrutiny on Byju’s financial practices and corporate governance. ​
As Byju’s navigates these multifaceted legal challenges, the outcomes of these proceedings will be pivotal in determining the company’s future trajectory and its relationships with international lenders.​
