Byju’s Alpha Inc., a U.S.-based finance entity linked to Indian edtech company Byju’s, has filed a lawsuit against its parent firm and key executives, accusing them of embezzling $533 million.
In a statement issued on April 9, Byju’s Alpha claimed that the funds were misappropriated through a deceptive scheme designed to mislead lenders. The case has been filed in the U.S. Bankruptcy Court for the District of Delaware.
The lawsuit names Byju Raveendran (founder of Byju’s), his wife Divya Gokulnath, his brother Riju Ravindran, and company advisor Anita Kishore as defendants. The filing alleges that the group fraudulently transferred loan money, falsified financial data, and blocked lenders from taking necessary actions to recover funds.
According to Alpha, it was created specifically to handle the proceeds of a $1.5 billion term loan (referred to as the Alpha Funds). The legal action follows a ruling by the Delaware Bankruptcy Court against Byju’s and its founder regarding the alleged misappropriation of the $533 million.
Alpha accuses the leadership of devising a “lawless scheme” to hide and illegally take funds, claiming that they consistently misled stakeholders about the whereabouts of the money.
In its legal request, Alpha is asking the court for:
- Compensation for breach of fiduciary duties by Byju’s
- Damages for Divya, Anita, and Byju aiding and abetting those breaches
- A full accounting of how the Alpha Funds were used
- Damages for conversion and civil conspiracy
- Repayment of legal fees, related costs, and interest
- Any additional relief the court finds appropriate
Byju’s has not yet responded to the allegations. Livemint has reached out for a statement, and the article will be updated once one is provided.