A group of US lenders has alleged that the founder of bankrupt Indian company Byju’s worked with financier Rupin Banker to siphon more than half a billion dollars in corporate loans for personal use, and is applying to discontinue proceedings against UK supply chain procurement and finance company OCI.
The lenders alleged in a May lawsuit that OCI received US$533mn they said had been fraudulently transferred from Think and Learn, an educational app provider founded in 2011 by tech entrepreneur Byju Raveendran and commonly known as Byju’s. The company has been subject to bankruptcy proceedings since January 2024.
Byju’s Alpha (Alpha) – a Byju’s subsidiary that received the funds as part of a US$1.2bn term loan facility and is under the lenders’ control – filed the suit to recover the money from OCI and Banker, who is variously described in court filings as a principal of, or advisor to, OCI.
However, documents submitted in a Delaware court on November 15, some of which were redacted or filed under seal, mark a stark contrast to earlier filings.
The latest submissions include a declaration from OCI’s founder and chief executive, Oliver Chapman, alleging that the vast majority of the sums were not used to procure goods and services, but were in fact diverted by Banker to other entities.
Byju Raveendran had filed a declaration last year in a separate case saying the funds were sent to OCI for “legitimate commercial purposes”, such as the purchase of IT equipment and advertising services.
But Chapman’s declaration alleged that a review of business records showed that only US$13mn was transferred to companies involved in Byju’s’ procurement activities.
Nearly US$480mn was transferred to Revere Master SPV LLC, a special purpose vehicle of investment banking and wealth management provider Revere Securities, he said.
Chapman alleged that documents held by OCI suggest the intention was then to transfer those funds from the SPV to a Singapore company, Byju’s Global. The lenders allege this company is under the sole control of Byju Raveendran.
The remaining US$13mn was transferred to Banker or to third parties, Chapman said.
All transactions “were entirely directed and arranged by Rupin Banker”, the declaration said, adding that Banker and Raveendran “were in regular direct contact over the period of these transactions”. Banker and Raveendran have denied the allegations.
In light of the statement, Alpha has now filed a motion to discontinue proceedings against OCI and pursue only Banker, the court filings show.
The motion, filed by the lenders on November 15, said Chapman’s information “provides important value… including in unravelling the truth behind what happened to the Alpha funds and holding wrongdoers accountable”.
They now allege that the funds “were, in effect, roundtripped right back to Byju Raveendran and his affiliates”, part of a “plot… to siphon hundreds of millions of dollars of corporate assets for personal use”.
Banker, Raveendran refute claims
Raveendran is not a party to the case, and both he and Banker denied the allegations when contacted by GTR.
Banker’s legal representatives said he was “stunned by the filing and by Mr Chapman’s declaration”.
“We are considering all Mr Banker’s options in setting the record straight, all consistent with our motion to dismiss the debtor’s claims against Mr Banker,” they told GTR.
“Suffice it to say for now that Mr Chapman’s newly invented position is inconsistent with his role as OCI’s sole owner and only person with signing authority on OCI’s bank accounts.
“As a non-executive structuring advisor without any authority to bind OCI, it would be impossible for Mr Banker to have done the things of which Mr Chapman now accuses him.”
The lawyers added Banker “never received a single dollar of the funds at issue”.
“All the claims against Mr Banker are misdirected, without merit and have been brought in a court that lacks jurisdiction over him. Mr Banker will continue to defend himself vigorously.”
Banker is also founder and chairman of Dubai-based Banker Group, an investment and commodity trading company founded in 2013, its website shows.
Meanwhile, Raveendran’s legal representative, J Michael McNutt, a senior litigation advisor and counsel at Paris law firm Lazareff Le Bars, said Raveendran “disputes all allegations made in the Delaware court submission”.
McNutt said Raveendran has submitted documents in other proceedings showing OCI did provide “services to [Byju’s] with a value of over US$600mn in the relevant period”.
McNutt said that Glas Trust Company, which acted as administrative and collateral agent for the term loan facility and is an intervenor-plaintiff alongside Alpha in the case, has information showing funds were not used by Byju’s founders for personal gain.
Applications are pending in the Indian courts to require greater “disclosure and accountability” by Glas Trust and the resolution professional at Byju’s, the lawyer said.
McNutt added that claims for at least US$2.5bn are being prepared against Glas Trust on behalf of Byju’s founders, which are expected to be filed before the end of 2025.
Alpha’s legal representative, Benjamin Finestone of Quinn Emanuel, said: “We are pleased to have reached an agreement with OCI that will, subject to US Bankruptcy Court approval, resolve Alpha’s adversary proceeding against OCI and Oliver Chapman”.
Finestone told GTR that Alpha intends to continue claims against Byju Raveendran and individuals or companies named in other proceedings “until fair redress is obtained for the losses suffered by Alpha’s estate”.
