US judgment against Byju's founder faces steep barriers in India

A $1.07 billion default judgment against Byju Raveendran (pictured) by a Delaware bankruptcy court faces significant obstacles before it can be enforced in India, legal experts say, underscoring the complexities involving cross-border debt recovery and the limits of US court jurisdiction over foreign nationals.

- PEERZADA ABRAR

The ruling, issued November 20 after the edtech entrepreneur failed to comply with discovery orders, marks one of the largest personal liability judgments against an Indian startup founder.

The judgment against Raveendran, founder of Think and Learn Private Limited (TLPL), parent of the troubled edtech firm Byju’s, followed efforts by Byju’s Alpha and US lender GLAS Trust Company LLC to recoup funds they allege were improperly diverted. The court found Raveendran evasive on multiple occasions and awarded $533 million on one count and $540.6 million on three others, while also ordering a full accounting of the disputed Alpha funds.

Byju’s Alpha was incorporated in Delaware in 2021 as a special-purpose vehicle for a $1.2 billion term loan. Lenders later took control and alleged $533 million was “roundtripped” to Raveendran and his affiliates, a claim the founders deny.

Enforcing the judgment in India will require GLAS Trust to navigate a legal regime that offers no fast track for US court orders. India doesn't recognise the US as a “reciprocating territory” under the civil procedure code, meaning the Delaware ruling can’t be executed directly. Creditors instead must file a fresh civil suit in India, where the foreign judgment serves only as evidentiary material, not a binding order.