The US lender accused Byju's for the indulgence in decisive transactions of $533 million
The ed-tech app Byju’s founder Byju Ravindran’s brother Riju Ravindran has been ordered to pay $10000 (Rs 8,00000) per day until he finds $533 million that the company is accused of concealing from the US lenders. It was said that the tussle began in 2022 and made way for disputes over the missing cash. A judge stated that Riju Ravindran has to pay $10,000 every day until he assists in locating the missing amount given by the US lenders.
The judge called for Riju Ravindran’s lawyer to make sure that the clients are present at the court or attend at least a hearing next month. Since 2022, Byju’s company has borrowed around $1.2 billion from the US money lenders. The lenders said that the case is approaching financial default and has not met the deadline policy missing financial agreements.
The US lender also accused Byju for the indulgence in decisive transactions of $533 million from the shell company. However, Byju Ravindran opposed the statement and defended the company’s actions saying that the predatory lenders targeted him as responding to the allegations.
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Meanwhile, US Bankruptcy Judge Brendan Shannon denied the request to hold this debt fight so that the company may find new lawyers as the American lawyers quit defending their clients stating it as an “irreparable breakdown.”
Riju Ravindran is one of the three directors of the Think & Learn platform operating Byju’s and was taken over by the lenders after their loan defaulted on account of bankruptcy as per the US court documents.
The struggling start-up Byju’s by Byju Raveendran once created momentum and gradually drained its health and found null at the finances. He was accused of mismanagement by other investors who were dissatisfied with the company’s performance. Companies like Prosus Ventures and Peak XV Partners pulled up stakes over a fray with Byju Raveendran last year.
Also, read| Once Valued At $22 Billion, Byju’s Value Is Now Cut To Zero
