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The United States Bankruptcy Court for the District of Delaware has ordered Byju’s founder, Byju Raveendran, to pay more than $1.07 billion after finding that he willfully violated multiple court discovery orders, evaded compliance, and obstructed efforts to trace missing assets valued at over half a billion dollars. The court concluded that Raveendran deliberately refused to disclose information about the missing $533 million “Alpha Funds” and the transfer of the $540.6 million Camshaft Capital Fund partnership interest.

The order applies solely to Raveendran, with co-defendants Divya Gokulnath and Anita Kishore not facing sanctions or default judgment. The sanctions were imposed under Rule 37(b)(2)(A)(vi) of US civil procedure after numerous extensions and deficiencies in Raveendran’s document production. He failed to attend hearings, missed deadlines, produced irrelevant documents, and neglected to produce essential financial records.

Previously, a civil contempt order required him to pay $10,000 per day for non-compliance, but he did not pay, resulting in mounting fines. The court highlighted the unique gravity of the case, given that substantial assets were concealed from creditors and Byju’s Alpha, justifying the unusually heavy sanction.

The damages include $533 million for aiding and abetting breach of fiduciary duty and $540.6 million for breach of fiduciary duty, conversion, and civil conspiracy, totaling $1.07 billion.

This extraordinary judgment underscores the court’s intolerance for intentional obstruction and fraud in bankruptcy proceedings.​