Byju Raveendran faces legal risks after US court ruling on fund fraud

Lenders may argue that as the ultimate decision-maker, Raveendran had knowledge of or actively participated in the diversion of funds, potentially justifying a 'corporate veil-piercing' claim

Byju Raveendran, the founder of beleaguered edtech firm Byju’s, now faces significant legal exposure following the US court’s ruling on fraudulent fund transfers. While Raveendran has not been directly named in criminal proceedings yet, the finding of fraudulent transactions opens the door for civil liability, potential personal asset recovery actions, and regulatory scrutiny, according to legal experts and industry sources analysing the order.

 

Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware recently issued an order granting summary judgment in favour of Byju’s Alpha Inc. against Riju Ravindran, Camshaft Capital Fund LP and its