Byju's goes to war: $2.5 billion lawsuit brewing against Glas Trust; here's what the matter is about
Byju's founders Byju Raveendran and Divya Gokulnath are preparing a $2.5 billion lawsuit in India and overseas as the edtech giant battles insolvency proceedings and a legal dispute with Glas Trust, trustee for Term Loan B lenders.
According to their legal counsel, the planned legal action will be pursued both in India and internationally, targeting those who have allegedly harmed their reputation and business interests, including their edtech company Think & Learn.
In a statement issued on Thursday by Lazareff Le Bars Eurl, Senior Litigation Advisor J Michael McNutt said, "Byju's founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses, including Think & Learn.
The conduct before the Courts by Alpha, Glas Trust and its counsel has been reprehensible and improper in our view. We reserve the right to use all legal means to obtain justice for Byju's founders.
'
Glas Trust is the trustee representing lenders to whom Byju's owes $1.2 billion. However, the founders have contested the trustee's claims and challenged its authority. According to them, Glas Trust only represents 17.38% of the voting rights of the consortium of lenders.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
No annual fees for life
UnionBank Credit Card
Apply Now
Undo
The founders have already filed claims in India against Glas Trust and a former subsidiary of Think & Learn, which Glas now claims to control. Additional legal action is also being prepared in other jurisdictions. The lawsuits are expected to seek damages of no less than $2.5 billion.
Byju's is currently undergoing insolvency proceedings initiated by Glas Trust. Though the National Company Law Appellate Tribunal (NCLAT) had earlier dismissed the case in an appeal filed by the BCCI, Glas Trust approached the Supreme Court, which allowed the Corporate Insolvency Resolution Process (CIRP) to continue.
Byju's founders are contesting the insolvency case and have filed a plea seeking the removal of the Interim Resolution Professional, alleging a conflict of interest due to links with consultancy firm EY, which is also connected to Glas Trust.
Meanwhile, Glas Trust has gained control of Byju's Alpha, a special-purpose financing vehicle created to receive Term Loan B funds. Byju's Alpha has filed a lawsuit against Raveendran, Gokulnath, and senior executive Anita Kishore, accusing them of executing a scheme to hide and misappropriate $533 million of loan proceeds.
The founders' counsel has clarified that no court, either in India or the US, has ordered the payment of any amount by Raveendran or Gokulnath to Think & Learn or its affiliates.
Raveendran is currently involved in legal proceedings in a Delaware court, which began in April 2025, but has challenged the court's jurisdiction. He has denied all allegations and is actively defending himself. He is also seeking reconsideration of a civil contempt order issued on July 7, 2025, related to the disclosure of certain information, which he claims is already under review in Indian courts.
"That Civil Contempt Order concerns requests for information that are duplicative of matters already before the Indian Courts. Byju and his counsel are addressing those matters before the Indian Courts as well. Byju and his counsel are evaluating how to address that Order and reserve all rights," the statement said.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
14 hours ago
- The Hindu
Enforcement Directorate searches are over, say Reliance Group companies
Reliance Group firms Reliance Infrastructure (RInfra) and Reliance Power (RPower) on Sunday (July 27, 2025) said the Enforcement Directorate (ED) had concluded searches on their premises and that the companies would continue to cooperate with the agency. Both the Anil Ambani-led group's companies said they, including their officials, would continue to fully cooperate with the ED. They said that the said action had no impact on their business operations. RInfra said, 'Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company. The same appears to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old. Reliance Infrastructure is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL.' 'RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016, since over six years,' it said. RPower also said the same, adding that the company continued to operate in its normal course and that the said action had no impact on its business operations. The ED began searching multiple premises linked to the group on Thursday (July 24, 2025) over alleged money laundering and financial irregularities, running into crores of rupees, and the searches continued for the third day on Saturday (July 27, 2025).
&w=3840&q=100)
Business Standard
19 hours ago
- Business Standard
ED actions concluded at all locations, say Reliance Infra, Reliance Power
Reliance Infrastructure (R-Infra) and its sister firm Reliance Power (R-Power) have stated that actions taken by the Enforcement Directorate (ED) have concluded at all locations, and both companies have fully cooperated and will continue to cooperate with the authority. Earlier, on Thursday, the ED had raided more than 35 premises and searched over 50 companies in New Delhi and Mumbai linked to the Reliance Anil Ambani Group (RAAGA). The investigation was related to the alleged illegal diversion of loans worth Rs 3,000 crore from Yes Bank between 2017 and 2019. 'Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company,' both R-Infra and R-Power clarified again on Sunday (27 July). The companies further clarified that the media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old. R-COM has been undergoing the Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code (IBC) 2016 for over six years. Earlier this month, R-Com disclosed to the exchanges that the State Bank of India (SBI) had decided to classify the company's loan account as 'fraud' due to irregularities in the conduct of the account, and that the bank would report both the account and Anil Ambani, a director at R-Com, to the Reserve Bank of India (RBI). On the other hand, R-HFL has been fully resolved pursuant to the judgement of the Supreme Court of India. 'Similar allegations as those set out in the media reports are sub judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information,' R-Infra and R-Power noted. Further, both companies claimed that Anil Ambani is not on the board of R-Infra and R-Power. Accordingly, any action taken against R-COM or R-HFL has no bearing or impact on the governance, management, or operations of R-Infra and R-Power, the companies added. 'The company continues to operate in the normal course, and the said action has no impact on its business operations. The company continues to focus on its business plans and remains committed to creating value for all stakeholders,' R-Infra and R-Power added.
Mint
21 hours ago
- Mint
Reliance Power, Reliance Infra raids: Anil Ambani-owned companies say ‘action by ED concluded' — Full statement
Anil Ambani-owned listed firms Reliance Power and Reliance Infrastructure on Sunday informed the stock exchanges that the action by the Enforcement Directorate (ED) has now concluded. The enforcement agency continued its search operations against the Reliance Group companies until Saturday, 26 July, in Mumbai, marking the third day of the raid. They reportedly recovered a number of documents and computer peripherals from multiple locations, according to a PTI report citing officials aware of the development. 'The action by ED has concluded at all locations. The company and all its officials have fully cooperated and will continue to cooperate with the authority,' the company informed the NSE through the filing. In a similar official statement, both listed companies said that recent developments related to the matter have had no impact on their business operations and performance. Both Reliance Power and Reliance Infrastructure said that they do not have any business or financial linkage to Reliance Communications (RCOM) and Reliance Home Finance Limited (RHFL). They also said that Reliance Power and Infra are both separate and independent listed entities. The companies also disclosed that as of 27 July 2025, Anil Dhirubhai Ambani is not on the board of directors panel for both the listed companies, hence he does not have any governance, management or operational power. The Enforcement Directorate started its search operations at more than 35 premises across Mumbai and Delhi on Thursday, 24 July 2025, as part of the agency's money laundering investigation under the Prevention of Money Laundering Act (PMLA) into the Reliance Group of Companies. Multiple media reports suggested that ED-conducted raids on Thursday were in connection with an alleged ₹ 3,000-crore bank loan fraud involving Anil Ambani-owned Reliance Group of Companies and Yes Bank. Shares of Reliance Power closed 4.99% lower at ₹ 56.72 after Friday's stock market close, compared to ₹ 59.70 at the previous market session. Reliance Infrastructure stock also closed 5% lower at ₹ 342.05, compared to ₹ 360.05 in the previous market session. Reliance Power's full statement: The action by ED has concluded at all locations. The Company and all its officials have fully cooperated and will continue to cooperate with the authority. Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the Company. The same appears to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old. Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years. RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information. Mr. Anil D. Ambani is not on the Board of Reliance Power. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power. The Company continues to operate in the normal course and the said action has no impact on its business operations. The Company continues to focus on its business plans and remains committed to creating value for all stakeholders. Reliance Infrastructure's full statement: The action by ED has concluded at all locations. The Company and all its officials have fully cooperated and will continue to cooperate with the authority. Action by ED has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the Company. The same appears to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) which are over 10 years old. Reliance Infrastructure is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years. RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information. Mr. Anil D. Ambani is not on the Board of Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Infrastructure. The Company continues to operate in the normal course and the said action has no impact on its business operations. The Company continues to focus on its business plans and remains committed to creating value for all stakeholders. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of the individual parties, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
