Byju's Accused of Redirecting $533M Through Singapore Entity to Evade Lenders

Bankrupt Indian edtech firm Byju's allegedly used a UK-based logistics company to hide $505.9 million in cash from U.S. lenders, according to a court filing. The funds were transferred through OCI Limited, a firm that has since blamed a former adviser for facilitating the transactions according to court documents. The move was part of a broader effort by Byju's founder, Byju Raveendran, to prevent lenders from recouping the funds.

The hidden cash was initially intended for equipment and services related to Byju's, formally known as Think & Learn Pvt Ltd. Instead, the money was redirected to a Singapore-based entity called Byju's Global, according to OCI founder Oliver Chapman, who provided the details in a declaration. Raveendran and his former adviser, Rupin Banker, allegedly worked together to move the funds in and out of OCI as part of a complex financial maneuver according to court documents.

U.S. lenders have been battling Byju's over a $1.2 billion loan that turned bad, leading to the bankruptcy of the shell company, Byju's Alpha. The lenders have used the Chapter 11 bankruptcy case to recover the remaining $533 million in loan proceeds. The case has spilled over into India, where Byju's operating company was also placed into bankruptcy. Legal proceedings continue in both jurisdictions, with Byju's Alpha seeking court approval for a proposed settlement with OCI according to court filings.

Why the Standoff Happened

The use of OCI Limited for these transactions appears to be part of a scheme to obscure the true use of the funds. According to court documents, the money was not used for the stated purposes of purchasing goods or services for Byju's, but instead funneled back to a Singapore entity controlled by Raveendran. This practice, known as "round-tripping," involves moving funds out of a company and back in through a different entity, often for personal or non-commercial gain.

Chapman stated in his declaration that Rupin Banker played a key role in executing the plan alongside Raveendran. He described the transactions as an abuse of OCI's services, with no legitimate commercial purpose behind them. The lender-backed lawsuit and related legal actions aim to hold both Banker and Raveendran responsible for the missing funds.

The U.S. lenders filed a separate lawsuit in April 2025 against Raveendran, his wife, and a former company executive. The suit alleged that the three worked together to misappropriate and hide the $533 million. Raveendran has denied all allegations, with his legal team arguing that the funds were used for the benefit of Byju's parent company.

What Analysts Are Watching

The case has drawn attention from legal and financial experts, who are closely watching the outcome of the legal proceedings. The involvement of a UK logistics firm and a Singapore-based entity highlights the complexity and international nature of the alleged fraud. The case also raises broader questions about corporate governance and financial transparency in cross-border transactions.

The use of a special purpose vehicle, or SPV, to channel the loan is a common practice in finance, but this case suggests potential misuse of such structures. The fact that the funds were moved through multiple jurisdictions complicates enforcement efforts and adds to the legal challenges faced by the U.S. lenders.

Legal analysts are also monitoring the impact of the case on the broader market. While the logistics sector itself appears unaffected by the allegations, the case could influence investor sentiment toward edtech firms and their financial reporting practices according to financial experts. The outcome may set a precedent for how courts handle similar cases involving cross-border financial misconduct.

The case continues to evolve, with both sides preparing for further legal action. Byju's founders have pledged to refute the latest allegations made in court, citing incomplete and selective evidence as the basis for the claims. Meanwhile, the U.S. lenders and their legal representatives remain focused on recovering the funds and ensuring accountability for those allegedly responsible.