Byju Squeaks from his Rathole after $533 Million Fraud Established by U.S. Court

Given the severity of the financial misconduct exposed in U.S. courts, Byju Raveendran should consider himself lucky if he manages to escape jail time altogether.

Face of Shame or Sham or Shamelessness?

Byju Squeaks from his Rathole after $533 Million Fraud Exposed by U.S. Court

In what appears to be a desperate bid to control the narrative and assuage lenders, embattled Byju’s founder Byju Raveendran finally broke his silence after weeks of being practically underground, emerging on LinkedIn to launch a tirade against EY India, GLAS Trust, and the court-appointed Interim Resolution Professional (IRP). His aggressive counterattack comes barely hours after the U.S. Bankruptcy Court in Delaware delivered a damning verdict, confirming fraudulent transfers amounting to $533 million linked to Byju’s U.S. subsidiary.

Raveendran’s latest outburst also coincides with the National Company Law Tribunal (NCLT) appointing Shailendra Ajmera as the new IRP, replacing Pankaj Srivastava, whose conduct was deemed unfit and improper by the Tribunal. While his company is sinking under mounting debts and legal scrutiny, Byju Raveendran has chosen to shift blame rather than take responsibility, a move that further erodes his credibility.

From Silent Fugitive to Online Warrior

For weeks, Byju Raveendran and his brother, Riju Ravindran, have remained unseen, reportedly lying low in Bengaluru as they try to negotiate settlements with lenders, including the State Bank of India (SBI). No one has publicly seen or met them in recent weeks, fueling speculation about their exact whereabouts. However, in a bid to sound confident and regain control of the crumbling narrative, Raveendran surfaced on LinkedIn with a scathing, yet unsubstantiated, attack on the very institutions overseeing Byju’s financial restructuring.

In his post, Raveendran accused EY India, GLAS Trust, and the outgoing IRP of engaging in a “criminal collusion” against Byju’s. He claimed that he had “conclusive evidence” proving their misconduct, but conveniently failed to provide any details or documents to support his allegations. Without independent verification, his claims remain dubious at best and a blatant attempt at distraction at worst.

A Familiar Pattern: Blame-Shifting Instead of Accountability

Raveendran’s LinkedIn rant follows a long pattern of evasion and finger-pointing. When Byju’s domestic empire in India began to crumble, he did not hesitate to execute a massive financial fraud in the U.S., hoping to stay afloat. But unlike in India, where proceedings before NCLT and the National Company Law Appellate Tribunal (NCLAT) continue to drag on indefinitely, U.S. courts caught up quickly, exposed the scheme, and held him accountable.

Despite settling the ₹158.90 crore claim of the Board of Control for Cricket in India (BCCI) in NCLAT on August 1, 2024, Byju’s troubles are far from over. The legal battles in both the U.S. and India continue to escalate, with lenders and investors showing no confidence in his leadership. His feeble attempts at shifting the blame will do little to restore trust or reverse the damage caused by his financial mismanagement.

The Road Ahead: A One-Way Ticket to Collapse?

Now that market credibility is in tatters, investors have abandoned ship, and lenders are circling for repayment, Raveendran’s future appears bleak. The damages phase of the U.S. lawsuit is yet to begin, and whether he can afford to pay the court-determined compensation will be the ultimate test. While he currently does not face jail time, his ability to evade criminal prosecution hinges entirely on his financial maneuvering.

For someone who once donned the robes of a homegrown unicorn visionary, this fall from grace is nothing short of spectacular. Given the severity of the financial misconduct exposed in U.S. courts, Byju Raveendran should consider himself lucky if he manages to escape jail time altogether. But with ongoing insolvency proceedings, governance failures, and legal scrutiny piling up, his desperation is palpable—and his days at the helm of Byju’s appear numbered.