BENGALURU: A lawyer for Glas Trust Company , which represents lenders to Byju’s Alpha Inc., allegedly told a US bankruptcy court this week that the firm received reports suggesting founder Byju Raveendran was in discussions with “high-ranking Indian officials” to “make private and unofficial payments” in connection with regulatory penalties. Byju’s founders plan to initiate legal proceedings against parties involved in the US case, seeking damages of at least $2.5 billion.
The remark was made during a July 15 hearing in the US Bankruptcy Court for the District of Delaware, where Byju’s Alpha is undergoing Chapter 11 proceedings . The claim was introduced as part of arguments seeking to amend a protective order that restricts how confidential documents obtained in US discovery can be used in enforcement actions in other countries.
“We received reports that Mr. Raveendran is negotiating with high-ranking Indian officials to make substantial payments which we understand may be private and unofficial,” said Ravi Shankar, partner at Kirkland & Ellis, representing Glas Trust. No supporting evidence was filed, but the allegation was cited to argue that certain payments could potentially involve assets under litigation and therefore warrant broader disclosure access across jurisdictions.
The claim comes amid ongoing regulatory scrutiny . In 2023, the Enforcement Directorate issued a Rs 9,362 crore show cause notice to Think & Learn Pvt Ltd and Mr. Raveendran for alleged violations under the Foreign Exchange Management Act.
In response, the founders of Byju’s, represented by Paris-based law firm Lazareff Le Bars, said they intend to initiate legal proceedings seeking damages from parties involved in the US case. “Byju’s founders reserve all rights to bring actions against those parties that caused damage to them personally and their businesses, including Think & Learn. The conduct before the Courts by Alpha, Glas Trust and its counsel was reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for BYJU’S Founders,” said J Michael McNutt, Senior Litigation Advisor, Lazareff Le Bars.
The founders are preparing claims to seek damages of no less than $2.5 billion across multiple jurisdictions, including India, as per the statement.
The remark was made during a July 15 hearing in the US Bankruptcy Court for the District of Delaware, where Byju’s Alpha is undergoing Chapter 11 proceedings . The claim was introduced as part of arguments seeking to amend a protective order that restricts how confidential documents obtained in US discovery can be used in enforcement actions in other countries.
“We received reports that Mr. Raveendran is negotiating with high-ranking Indian officials to make substantial payments which we understand may be private and unofficial,” said Ravi Shankar, partner at Kirkland & Ellis, representing Glas Trust. No supporting evidence was filed, but the allegation was cited to argue that certain payments could potentially involve assets under litigation and therefore warrant broader disclosure access across jurisdictions.
The claim comes amid ongoing regulatory scrutiny . In 2023, the Enforcement Directorate issued a Rs 9,362 crore show cause notice to Think & Learn Pvt Ltd and Mr. Raveendran for alleged violations under the Foreign Exchange Management Act.
In response, the founders of Byju’s, represented by Paris-based law firm Lazareff Le Bars, said they intend to initiate legal proceedings seeking damages from parties involved in the US case. “Byju’s founders reserve all rights to bring actions against those parties that caused damage to them personally and their businesses, including Think & Learn. The conduct before the Courts by Alpha, Glas Trust and its counsel was reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for BYJU’S Founders,” said J Michael McNutt, Senior Litigation Advisor, Lazareff Le Bars.
The founders are preparing claims to seek damages of no less than $2.5 billion across multiple jurisdictions, including India, as per the statement.
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