The court has held Think and Learn Pvt Ltd responsible for misleading lenders and facilitating the transfer. It also determined that the hedge fund 'Camshaft Capital,' founded by William Morton, was a fictitious entity used to carry out the fraud.
Edtech startup Byju's parent company, Think and Learn Pvt Ltd, its director Riju Ravindran, and hedge fund Camshaft Capital have been held responsible for fraud. This decision has been given by a US bankruptcy court. The court stated that Think and Learn, Riju Ravindran, and Camshaft Capital created a fraudulent scheme under which $533 million was diverted from Byju's Alpha—the US subsidiary of edtech firm Byju's. This decision is yet another setback for the struggling startup.
Judge John T. Dorsey of the US Bankruptcy Court for the District of Delaware found that the defendants deliberately attempted to misappropriate money that was set aside to repay Byju's lenders.
Byju's Alpha Made Fraudulent Money Transfers
The US court's decision confirms that Byju's Alpha, led by Riju Ravindran, violated the loan terms immediately after obtaining a $1.5 billion loan and then moved the money through a series of fraudulent transfers. The court also found that Riju Ravindran breached his duties and actively worked to conceal the transactions. The order cites statements made by Byju's founder, Byju Ravindran, where he allegedly told a financial advisor that the money was kept in a place "where lenders would never find it."
The court has held Think and Learn responsible for misleading lenders and facilitating the transfer. It also determined that the hedge fund 'Camshaft Capital,' founded by William Morton, was a fictitious entity used to carry out the fraud.
Byju Ravindran Breaks His Silence
Meanwhile, Byju Ravindran has finally broken his long silence with a detailed statement. He outlined the comeback plan for his troubled startup.
Ravindran wrote in a LinkedIn post:
"I am Byju of Byju's, and I am here now. I should have been here earlier. But I was too busy building my company. Then I got too busy saving everything I built. I have been wanting to connect with you directly for a long time. But I was waiting for justice and truth to prevail. Today, I don't want to wait. Today, I can't wait."
He further said, "You have been told that my family has made a lot of money by selling our shares. But this is only half the story. You have not been told that all that money has been invested back in our company."
In the post, Ravindran also alleged that he and several of his employees have received a document containing evidence of criminal collusion between EY India, US-based lender GLAS Trust, and the firm's IRP Pankaj Srivastava. He expressed confidence that a thorough investigation of this evidence would reveal the truth.
Ravindran also stated, "I regret that I have not been able to fulfill the promises made to all my stakeholders. Believe me, we did everything in our power to prevent insolvency."
