The Karnataka High Court has restrained Byju Raveendran, founder of Think & Learn Pvt. Ltd. (Byju’s), from selling or transferring assets in connection with a $235 million (Rs 19,505 crore) dispute with Qatar Holdings LLC. The order came after Qatar Holdings, a subsidiary of the Qatar Investment Authority, sought enforcement of an arbitral award in India.
Court order and loan dispute
According to a report by Mint, Justice R Natraj, in his order on Monday, stated, “Since the petitioners (Qatar Holdings) sought for an interim injunction to restrain the respondents (Byju’s) from alienating the assets (mentioned in schedule A & B) … the respondents are restrained by way of interim injunction from alienating, encumbering or transferring the properties till the next date of hearing.”
The dispute stems from a $150 million (Rs 12,450 crore) loan extended in September 2022 to Byju’s Investments Pte Ltd, personally guaranteed by Raveendran. The funds were used to acquire shares of Aakash Educational Services Ltd, which were later transferred in violation of the agreement.
After repeated defaults, Qatar Holdings demanded early repayment of $235 million. The Singapore International Arbitration Centre (SIAC) in July 2024 ordered immediate repayment, with compounded interest raising the dues to over $249 million (Rs 2,183 crore).
Byju’s ongoing troubles
Byju’s has faced mounting financial crises, including insolvency proceedings in June 2024 over a Rs 158 crore default to the Board of Control for Cricket in India. In the US, Raveendran and others face allegations of siphoning $533 million (Rs 44,239 crore), further deepening the edtech firm’s troubles.
