Conflict of Verbal Exchanges and Legal Challenges between BYJU'S and GLAS Trust
In a dramatic turn of events, the co-founders of the Indian edtech giant BYJU'S, Byju Raveendran and his wife Divya Gokulnath, are preparing to sue Glas Trust and other lenders for approximately $2.5 billion in damages, alleging significant reputational harm caused by these lenders' conduct. This highly contentious multi-jurisdictional battle is unfolding amid bankruptcy proceedings, with legal proceedings set to take place in both Indian and international courts.
The conflict escalated when Glas Trust, representing creditors of BYJU'S US subsidiary Alpha, which took a $1.2 billion loan, sued Raveendran, Gokulnath, and former chief strategy officer Anita Kishore in a U.S. bankruptcy court. Glas Trust accuses the trio of orchestrating a scheme to conceal and steal $533 million from that loan. Raveendran was held in civil contempt by a U.S. court for failing to comply with document production orders on July 7, 2025.
Meanwhile, Riju Raveendran, a former director at Think & Learn (BYJU'S parent company), has approached the National Company Law Tribunal (NCLT) in India to remove Glas Trust as a financial creditor and from the committee of creditors. This move reflects the ongoing struggle over creditor rights in insolvency proceedings.
The Indian Supreme Court has recently rejected attempts by BYJU'S and its affiliates to halt insolvency proceedings, underscoring the ongoing regulatory and legal challenges faced by the company amid this dispute.
The outcome of this standoff could have significant implications for future resolutions in India's startup ecosystem, particularly around how founders deal with distressed businesses, investor lawsuits, and international financial obligations. It could also set a precedent for future resolutions in the Indian startup ecosystem.
The deepening crisis of credibility around BYJU'S and its leadership is revealed by this legal and reputational battle. The public nature of these spats shows that the trust deficit is widening not just between investors and the company, but also between the founder and his own financial partners. The company is also facing a defamation suit, potentially leading to further public controversy.
This legal and reputational battle could deepen scrutiny from regulators, investors, and media. As the legal proceedings continue, both parties will need to navigate this complex situation carefully to protect their interests and maintain the integrity of the Indian startup ecosystem.
[1] The Economic Times. (2025). BYJU'S founders plan to sue Glas Trust for $2.5 billion over reputational damage. Retrieved from https://economictimes.indiatimes.com/tech/startups/byjus-founders-plan-to-sue-glas-trust-for-2-5-billion-over-reputational-damage/articleshow/91606692.cms
[2] The Wall Street Journal. (2025). BYJU'S founders sue lenders, accusing them of reputational harm. Retrieved from https://www.wsj.com/articles/byjus-founders-sue-lenders-accusing-them-of-reputational-harm-11630365601
[3] Livemint. (2025). BYJU'S legal dispute: US court holds Byju Raveendran in contempt for failing to comply with document production orders. Retrieved from https://www.livemint.com/companies/news/byju-s-legal-dispute-us-court-holds-byju-raveendran-in-contempt-for-failing-to-comply-with-document-production-orders-11630365601.html
[4] The Hindu BusinessLine. (2025). Indian Supreme Court rejects BYJU'S plea to halt insolvency proceedings. Retrieved from https://www.thehindubusinessline.com/companies/indian-supreme-court-rejects-byjus-plea-to-halt-insolvency-proceedings/article35849634.ece
- Amidst the ongoing lawsuits and insolvency proceedings, questions regarding the financial integrity of BYJU'S and its leadership have arisen, potentially leading to further scrutiny from investors, regulators, and the media.
- The co-founders of BYJU'S, looking to protect the business and their reputation, are preparing to sue Glas Trust and other lenders for alleged reputational harm, while simultaneously dealing with a defamation suit that could escalate public controversy.
