
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

Economic Times
26 minutes ago
- Economic Times
ET Market Watch: Sensex slumps 721 pts, Nifty below 24,850; 5 factors why markets crashed
Transcript Hi, you're listening to ET Markets Radio, I am your host Neha V Mahajan. Welcome to a fresh episode of ET Market Watch -- where we bring you the latest news from the world of stock markets every single day. Let's get to it:Sensex tanked 721 pts while Nifty50 slipped below 24,850. Here's what dragged Dalal Street down:1. Financial Stocks Hit HardBajaj Finance plunged nearly 5% after Q1 results raised red flags around MSME lenders such as HDFC Bank, SBI, Kotak, Axis also Financial Services Index down over 0.9%.2. US-India Trade Deal StalledNo breakthrough on August 1 deadline looms, uncertainty talks stuck on dairy & agri terms.3. FII Sell-off ContinuesFIIs have dumped ₹11,572 crore in just 4 outflows + smallcap correction = weak market sentiment.4. India-UK FTA Signed, like textiles & autos may lack of clarity on the US front means no immediate boost for markets.5. Weak Global CuesAsian indices dipped across the Seng -1.1%, Nikkei -0.8%, ASX -0.5%.Investors cautious ahead of US Fed meeting & Big Tech earnings.M-Cap Loss: ₹6.5 lakh crore gone in a tuned. Volatility isn't going anywhere.


Economic Times
26 minutes ago
- Economic Times
SpaceX Starlink Outage: Global users face issues, longest disruption yet, says expert
SpaceX Starlink Outage: Customers Report Issues Starlink Confirms Software Failure Live Events SpaceX Starlink Users Share Frustration SpaceX Starlink Outage Longest Service Disruption SpaceX Starlink Outage Expert and Institutional Response FAQs (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel SpaceX's satellite internet service, Starlink, went through a major disruption affecting users across the globe. The outage, which lasted for over two hours, left many customers without internet access. SpaceX confirmed the issue was linked to internal software problems and promised to prevent future from several countries experienced a loss of internet connection through their Starlink satellite dishes. The outage was reported by users across the US, Canada, Australia, New Zealand, and Europe. Posts on platforms like Reddit, Facebook, and X revealed that many users were unable to access the user in Southern Italy reported trying different methods to troubleshoot the issue without success. US-based users from Virginia to Arkansas also said they were still offline. Some suggested trying a factory reset of the Starlink Nicolls, SpaceX's Vice President of Starlink Engineering, said the problem was caused by a failure in key internal software services These services control the core functions of the Starlink network. Although the issue was resolved for most users, some are still experiencing connectivity stated that the company is working to find the exact cause and will implement changes to avoid a repeat. On X, SpaceX CEO Elon Musk apologized and said the issue would be addressed users have started to regain access to the internet. Brian Westover of PCMag said he lost his connection for nearly two hours in rural Idaho. Initially, the Starlink app indicated that the dish was obstructed, though there were no visible noted the difficulty of knowing whether the issue was due to personal equipment or Starlink's system. This made it hard for users to know what actions to take to fix the Madory from Kentik, an internet analysis firm, described the outage as Starlink's longest since becoming a major provider. The outage lasted approximately 2.5 hours. This marks a significant event for a service with more than 6 million global a site that tracks online service disruptions, showed over 55,000 outage reports around noon PT. Even Starlink's website was affected and displayed a service outage notice before becoming Pan, a professor at the University of Victoria in Canada, also faced issues. He mentioned that their research team, which monitors 20 Starlink dishes worldwide, found all of them offline during the Starlink services were disrupted, T-Mobile confirmed that its new T-Satellite service operated normally with no impact. T-Mobile recently launched this messaging service to reach users in cellular dead outage was caused by a failure in internal software services that operate the core Starlink network, according to users have regained access, but some customers are still reporting connectivity issues in different regions.


Hans India
26 minutes ago
- Hans India
India proud to be most trusted friend of Maldives: PM Modi
Male: Calling Maldives "important" in India's Neighbourhood First policy and the MAHASAGAR vision, Prime Minister Narendra Modi on Friday said that New Delhi takes immense pride in being Male's "most trusted friend" and has stood with Maldives as first responder in times of need. Making a statement to the press along with the Maldives President Mohamed Muizzu, PM Modi congratulated the people of Indian Ocean country on the 60th anniversary of its independence and thanked Muizzu for inviting him as the 'Guest of Honour' on this historic occasion. "This year, India and Maldives are also celebrating 60 years of their diplomatic relations. But, the roots of our relations are older than history and as deep as the sea. The commemorative stamps released today display traditional boats of both nations. This reflects that we are not just neighbours but also co-passengers," said PM Modi. "India is the closest neighbour of Maldives. The Maldives holds an important place in India's Neighbourhood First policy and its MAHASAGAR vision. India is proud to be most trusted friend of Maldives. Be it a natural disaster or pandemic, India has always stood with them as first responders. Be it making essential commodities available or handling the economy after Covid, India has always worked together. For us, it is always friendship first," he added. PM Modi emphasised that the increasing cooperation between two nations in the defence and security sector is symbol of "mutual trust." He also spoke about the Defence Ministry Building that is set to be inaugurated and was graced by a giant portrait of PM Modi, on Friday. "Mutual cooperation in the field of defence and security is a symbol of our mutual trust. The Defence Ministry building, which is being inaugurated today, is a concrete building of trust. It is a symbol of our strong partnership," he said. PM Modi announced that India will extend a Line of Credit (LoC) amounting to USD 565 million to the Indian Ocean archipelago. He stated that the two nations have taken several steps to enhance economic partnership. "Last year in October, during the President's visit to India, we shared a vision on Comprehensive Economic and Maritime Partnership. Now, this is becoming a reality. It is a result of that our relations are touching new heights. Inauguration of several projects have become possible. 4000 social housing units, built with India's assistance, will become a new beginning and a new home for several families in Maldives. The Greater Male Connectivity Project, the Addu Road Development Project, and the redeveloped Hanimaadhoo International Airport will transform this entire region into an important transit and economic hub. Soon, with the beginning of ferry system, commuting between different islands will be smoother. After that, the distance between islands will be measured in terms of just ferry time, and not GPS," he said. The two leaders made the joint press statement following their meeting during which they reviewed the entire spectrum of India-Maldives relations and reaffirmed their commitment to further strengthening bilateral ties. "To accelerate mutual investment, we are working towards finalising the Bilateral Investment Treaty. We are also in discussions to develop the Free Trade Agreement. Our goal is to move from paperwork to prosperity. With the local currency settlement system, we will be able to have direct trade between Rupee and Rufiyaa. The pace with which UPI is gaining momentum in Maldives, tourism and retail will strengthen," said Prime Minister Modi. He announced that India and Maldives will strengthen regional maritime cooperation through the Colombo Security Conclave and also termed climate change a "major challenge" for both nations. "Peace, stability, and prosperity in the Indian Ocean region are our shared goals. Together, through the Colombo Security Conclave, we will strengthen regional maritime security. Climate change is a major challenge for both our countries. We have decided to promote renewable energy, and in this sector, India will share its experience with the Maldives," he said. Earlier in the day, PM Modi was accorded a ceremonial welcome and guard of honour at the Republic Square in Male as he began his official engagements during a two-day State Visit to the country. In a special gesture, President Muizzu welcomed PM Modi at the airport in Male as he arrived from the United Kingdom. Maldives Foreign Minister, Defence Minister, Finance Minister and Minister of Homeland Security were also present at the airport to welcome PM Modi. PM Modi said that he is "deeply touched" by Muizzu's gesture of coming to the airport to receive him. He expressed confidence that the ties between two nations will scale new heights of progress in the coming times. "Landed in Male. Deeply touched by the gesture of President Muizzu to come to the airport to welcome me. I am confident that India-Maldives friendship will scale new heights of progress in the times to come," PM Modi posted on X. PM Modi will participate in the country's 60th Independence Day celebrations as the Guest of Honour on Saturday. This is his third visit to the Maldives and notably the first by any head of state or government since Muizzu assumed office.