Byju’s, the well-known Indian edtech company, is planning to file a massive $2.5 billion lawsuit both in India and abroad. The company’s founders, Byju Raveendran and Divya Gokulnath, are accusing Glas Trust and others of harming their personal and business reputations.
What’s the Dispute About?
Glas Trust is the representative of a group of lenders who gave Byju’s a $1.2 billion loan (known as Term Loan B). However, Byju’s founders claim that Glas Trust doesn’t have enough voting rights (only 17.38%) to take major actions like starting insolvency proceedings.
Despite this, Glas Trust has taken Byju’s to court, claiming the company is unable to pay back the loan. India’s National Company Law Appellate Tribunal (NCLAT) initially rejected Glas’s plea, but India’s Supreme Court later allowed the insolvency process to continue.
Byju’s Strikes Back
In response, Byju’s founders have:
- Filed legal claims in India against Glas Trust and a former Byju’s subsidiary that Glas now claims to control.
- Started preparing lawsuits in other countries.
- Accused Glas Trust and its legal team of wrongdoing in court.
- Sought the removal of the Interim Resolution Professional (IRP) overseeing the insolvency process, alleging conflict of interest due to connections with consultancy firm EY (which is also linked to Glas Trust).
Accusations from Glas Trust
Glas Trust’s controlled entity, Byju’s Alpha, has sued Raveendran, Gokulnath, and executive Anita Kishore, alleging they hid or misused $533 million of the loan money.
What Byju’s Founders Say
- Their lawyers say no Indian or US court has ordered Byju’s founders to pay any money.
- They argue the US court has no jurisdiction over them and are challenging a civil contempt order issued on July 7, 2025.
- The information requested in the US case is already being reviewed in Indian courts, and they plan to respond legally.
this is a major legal battle between Byju’s and Glas Trust over loan disputes, company control, and reputational harm, with serious lawsuits and court cases ongoing in both India and the US.
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