Byju Raveendran, the founder of Indian EdTech firm BYJU'S, is facing serious allegations of attempting to influence a witness in a federal court case, as stated in a report by Bloomberg.
During a court hearing on November 21, 2024, businessman William R Hailer claimed that Raveendran had urged him to leave the United States and flee to Dubai to avoid testifying about suspicious activities he had observed while working with Raveendran.
Hailer, who had been scheduled to testify about Raveendran’s efforts to regain control of parts of BYJU'S empire, said that two days before his testimony, Raveendran sent him a plane ticket to Dubai, worth nearly $10,700.
Following this, according to Hailer, Raveendran made an offer to pay him a $500,000 salary if he agreed to move to Dubai immediately and work with him. Hailer also alleged that Raveendran discouraged him from testifying, suggesting that it would be better for him to come to Dubai instead.
“Most times, Byju carried three phones. He used personal email instead of work email for communications. He would isolate people into individual meetings or only include for certain periods of time,” Hailer said.
US Bankruptcy Judge John T Dorsey, who was overseeing the case, referred Hailer’s testimony to federal prosecutors after hearing these allegations. This could prompt a criminal investigation into the potential witness tampering. Federal prosecutors will now decide whether to investigate further.
Raveendran has been attempting to regain control of BYJU'S, which is under court supervision both in India and the US owing to financial troubles. The company has been in a legal battle with its creditors, some of whom claim Raveendran hid $533 million in loan proceeds, funds that should have been repaid to creditors.
BYJU'S is also involved in insolvency proceedings in India, where a court-appointed trustee is working to raise funds for creditors.
Earlier this year, another ally of Byju’s was held in contempt of court after fleeing the US just before a scheduled testimony. The case is currently being heard in the US Bankruptcy Court in Delaware.
