Byjus founders threat of defamation case an attempt to distract from facts: Glas Trust
The legal counsel of Byju's founders, J Michael McNutt, rejected the allegations levelled by Glas Trust, calling it "incomplete and misleading".
The counsel of Byju's founders, Byju Raveendran and Divya Gokulnath, on Thursday said they are gearing up to file an over USD 2.5 billion suit against Glas Trust and others for damage to their reputation and business.
"Byju Raveendran's latest act of threatening defamation claims against GLAS Trust and the Term Loan B Lenders is a transparent attempt to distract from the facts, coming on the heels of a US federal court holding him in contempt. The fact of the matter is that every court to consider the issues has ruled against Raveendran and his cohorts," Glas Trust said.
Glas Trust Company LLC is the trustee for lenders to whom Byju's owes USD 1.2 billion. Byju's founders have, however, contested Glas Trust claims.
Glas Trust now controls Byju's Alpha, which was a special-purpose financing vehicle established by the edtech firm to receive Term Loan B funds.
Byju's Alpha has filed a lawsuit against Byju Raveendran, his co-founder and wife Divya Gokulnath, and his consigliere Anita Kishore, alleging that each of them co-orchestrated and executed a lawless scheme to conceal and steal USD 533 million of loan proceeds.
Glas Trust said judgments exceeding USD 533 million have been entered against Raveendran's allies, "including for their fraudulent conduct".
"Raveendran's brother was found by a Delaware federal court to be untruthful and one of the most incompetent directors in Delaware's history. A Delaware federal court stated its intention to make a criminal referral when Raveendran attempted to bribe a witness and had held Raveendran in contempt," Glas Trust alleged.
The US lenders' agent said that it has at all times acted within its rights.
"Mr Raveendran's threats are desperate and meritless, and the irony of Mr Raveendran threatening to sue for defamation when he continues to unlawfully conceal what happened to the missing USD 533 million should be lost on no one," Glas Trust said.
McNutt alleged that GLAS Trust continues to distract from the true situation in India.
"It is incorrect to claim that US Courts have ruled against Raveendran and his 'co-horts' on the relevant issues. The proceedings in Delaware against Byju have only just commenced, and Byju has not even submitted his response to the complaint," the counsel said.
McNutt said Byju Raveendran has not been found guilty of any wrongdoing by any court, in any jurisdiction, and the contempt order against Byju is being contested.
He said that the term 'co-horts" is misleading and offensive.
McNutt alleged that the order against Think & Learn, its subsidiary and Byju Raveendran's brother (a director of Think & learn who is suspended due to bankruptcy in India) was without any legal representation.
Glas Trust initiated legal proceedings against Byju's and its founders in US courts.
The agent of US-based lenders also approached the Supreme Court of India to challenge the dismissal of the insolvency case against Byju's by the National Company Law Appellate Tribunal in an appeal filed by BCCI.
The apex court ruled in favour of Glas Trust, and the Corporate Insolvency Resolution Process (CIRP) litigation against Byju's is going on.
Byju's founders are contesting the case and filed a plea to remove the Interim Resolution Professional, alleging his link with Glas Trust through the consultancy firm EY.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
10 minutes ago
- Mint
DLF sells all 416 homes for over ₹2,300 crore in new Mumbai project Westpark
Bengaluru: DLF has sold out all apartments in a project in Mumbai for over ₹ 2,300 crore, marking a successful return to the real estate market in India's financial capital. DLF Home Developers Ltd, a subsidiary of DLF Ltd, India's most valued real estate company, said it sold all 416 units, including apartments and penthouses, in the first phase of The Westpark project in suburban Mumbai's Andheri (west) locality. The sale kicked off last week. Although DLF launched the project with two 37-storey towers initially, high demand prompted it to add two more towers. DLF is developing the project with New Delhi-based Trident Realty. The developer sold the entire inventory within a week at an average price of ₹ 42,500 per square foot. Non-resident Indians accounted for about 20% of the sales. Three of the five penthouses were sold for ₹ 35 crore each, at about ₹ 70,000 per sq. ft. 'Mumbai projects usually sell at a staggered pace. We are overwhelmed by the demand for our project and the sales,' Aakash Ohri, joint managing director and chief business officer of DLF Home Developers, told Mint in an interview. 'The Mumbai launch was important for DLF, and this gives us confidence to do more in the city.' The Westpark project marks DLF's return to Mumbai after exiting the property market there many years ago due to a sector slowdown. 'Mumbai is a key part of our national growth strategy. In Mumbai, customers liked the product offering including the amenities, followed by the brand value. Given the way we have entered the Mumbai market, we are here to stay,' Ohri added. The Mumbai project follows similar swift sales in Gurugram – DLF Privana West and Privana South, which collectively raked in ₹ 12,800 crore last year, and its super-luxury project The Dahlias, which clocked about ₹ 13,744 crore of sales bookings in FY25. The next big project from the DLF stable will be in Goa, in the current July-September quarter. The second phase of The Dahlias in Gurugram will be launched in the January-March quarter, Ohri said. DLF was the second highest-selling developer in FY25, after Godrej Properties Ltd. The company reported record sales bookings of ₹ 21,223 crore in FY25, up 44% from ₹ 14,778 crore the previous year. It has projected sales of ₹ 20,000-22,000 crore in FY26, banking on a pipeline that includes the next phase of The Dahlias, and the Mumbai and Goa launches. DLF has already achieved about half of its targeted sales for FY26 in the June-ended quarter. The company clocked ₹ 11,000 crore from bookings in Privana North, having sold the entire project inventory within a week of launch, it said in June. Mumbai recorded 75,672 property registrations in the six months ended 30 June, up 4% from 72,491 in the corresponding period last year, Anarock Property Consultants said, citing data from the Inspector General of Registration.
New Indian Express
39 minutes ago
- New Indian Express
Businesswoman held for Rs 100 crore GST fraud involving 27 fake firms across states
BHUBANESWAR: In a major breakthrough, the directorate general of GST intelligence (DGGI), Bhubaneswar zone, has unearthed a massive fraud involving a number of shell companies and fraudulent input tax credit (ITC) transactions worth several crores of rupees. A statement issued by the DGGI on Thursday said a businesswoman from Rourkela has been arrested in connection with the tax evasion involving creation and operation of 27 fake firms. The total value of the fraudulent transactions is estimated to be over Rs 100 crore. Acting on the lead obtained during inspection of a Cuttack-based firm, GST officials conducted a search operation at the residential premise of the accused in Rourkela. During the search, several incriminating materials, including fake seals of different firms, mobile phones and documents related to benami firms were seized. Sources said, the accused had allegedly opened a firm in the name of a lawyer in Cuttack. When the tax officials enquired about the firm, the lawyer stated his ignorance, which led the DGGI uncover the fraud. Preliminary findings revealed that 27 fake non-existent firms, without any business activity, were run by the woman using forged documents in the name of the dummy persons at various places in Odisha and outside. The firms were used solely for generating fake invoices and e-way bills. The accused allegedly used these entities to create a network of bogus transactions across different locations. 'Initial probe suggested that transactions involving Rs 85 crore were routed through these fake firms in the last few years. The prime suspect has been arrested,' the statement said.
Mint
40 minutes ago
- Mint
Delhi-based venture capital fund raises stake in this LIC-owned NBFC stock. Check details
LIC-owned stock: Shares of Paisalo Digital snapped their three-day winning run on Friday, July 25, even as Equilibrated Venture CFlow acquired a stake in the company. The selloff in the Indian stock market and profit booking after a stellar run over the last few days likely promoted a decline in the small-cap stock, which is part of Life Insurance Corporation of India's (LIC) portfolio. According to a filing shared by Paisalo Digital, the Delhi-based venture capitalist Equilibrated Venture CFlow acquired 74,70,000 shares of the company via the open market, representing a 0.82% stake. The stake was acquired by the company on July 24 and July 25, as per the filing. With this, Equilibrated Venture CFlow's stake in the LIC-owned NBFC stock rose to 16.50% from 15.67% earlier. According to the latest shareholding pattern filed by the company earlier this month, LIC owns a 1.12% stake or 77,59,511 shares. Another PSU life insurer, SBI Life Insurance, holds an 8.96% stake. The small-cap NBFC stock also remained in focus this entire week following the announcement of its Q1 results for FY26 and dividend record date.
