BYJU’S Billion-Dollar Blowback: Founders Ready to School Glas Trust in Court

Image Source: The Economic Times

In a dramatic turn of events on India's most high-profile startup drama, BYJU'S founders Byju Raveendran and Divya Gokulnath will sue Glas Trust and others for more than 2.5 billion dollars in damages. The litigation cuts across Indian and international jurisdictions and seeks damages for claimed reputational and business damage.

Key points of the counsel's submission

- The cases will be instituted against Glas Trust, Alpha Inc. (a dissolved subsidiary of BYJU'S) and others charged with misconduct in insolvency proceedings
- Glas Trust is faulted by the founders for overstating its dominance, holding only 17.38 percent of voting stock among lenders
- Legal documents will seek damages for loss of personal reputation and business interests like Think & Learn Pvt Ltd that owns the BYJU'S brand.

Legal history and present controversy

1. Glas Trust initiated insolvency proceedings against Think & Learn, which were pending in Indian courts
2. BYJU'S Alpha owned by Glas Trust accused the founders of misappropriating 533 million dollars from a 1.2 billion dollar loan
3. A judge on July 7 held Raveendran in civil contempt for defying, a ruling he is challenging
4. The founders deny all allegations and challenge the jurisdiction of foreign courts to the matter

Why it matters

Earlier valued at 22 billion dollars, BYJU'S is currently fighting for survival and credibility. The legal assault marks a turning point in its battle to take back control and reputation as financial and regulatory pressure mounts.

Sources: Economic Times, Business Standard, MSN, Deccan Herald, Business Today, TechStory, The Hindu