Aug 01, 2024 02:18 PM IST
Riju Ravindran, brother of Byju’s founder, has been at the center of a nearly two-year-old fight over the missing cash.
A suspended director of the troubled edtech firm Byju’s must pay $10,000 a day until he helps to find $533 million that his company is accused of hiding from US lenders, a judge said. Riju Ravindran, brother of Byju’s founder, has been at the center of a nearly two-year-old fight over the missing cash.
Lenders said that the money should be returned to them after the company defaulted. Riju Ravindran is one of three directors of Think & Learn Pvt. which operates the Byju’s brand.
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US Bankruptcy Judge Brendan Shannon also rejected a request to put the US debt fight on hold so Riju Ravindran and the company could find new lawyers. American lawyers for Riju Ravindran and Byju’s units want to quit defending their clients in the bankruptcy dispute as they blamed “an irreparable breakdown.”
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The judge ruled that Riju Ravindran’s lawyers must continue to represent their clients until at least a hearing next month. This comes as within 18 months of borrowing $1.2 billion from US lenders in 2022, Byju’s missed key financial reporting deadlines, had offices raided by regulators in India and was accused by US lenders of defaulting.
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Since then, the company has been accused of fraudulently transferring $533 million away from a shell company set up in the US. Byju’s has defended its actions.