Byju’s Faces Fresh Setback as High Court Restrains Asset Transfers Amid $235 Million Loan Row

In a fresh setback for Byju Raveendran, founder of troubled edtech giant Byju’s, the Karnataka High Court has restrained him from selling, transferring, or encumbering any assets. The interim order comes on the back of a petition filed by Qatar Holdings LLC, which is seeking enforcement in India of a $235 million arbitral award.

Qatar Holdings, a subsidiary of the Qatar Investment Authority (QIA), had lent $150 million to Byju’s in 2022, when the company was planning to acquire test-prep firm Aakash Institute. The loan was extended to Byju’s Investments Pte Ltd (BIPL), with Raveendran personally guaranteeing repayment.

The dispute arose after Byju’s allegedly used the funds to partly finance the purchase of 17.89 million shares in Aakash Educational Services Ltd., despite an agreement that barred transferring these shares. The shares were later moved to another Singapore-based firm controlled by Raveendran, violating the loan terms.

Following defaults, Qatar Holdings cancelled the financing deal and sought early repayment. Arbitration proceedings in Singapore led to a global freeze on assets worth $235 million belonging to Raveendran and BIPL. In July 2024, the Singapore International Arbitration Centre (SIAC) ordered immediate repayment, including interest, taking the total due to over $249 million (₹2,183 crore).

In India, Qatar Holdings has now sought attachment and sale of Raveendran’s assets. On September 1, Justice R. Natraj granted an interim injunction, preventing any transfer of properties until the next hearing. Byju’s counsel argued the petition had not been served and requested more time, following which the court directed Qatar Holdings to furnish a copy.

The high-profile case adds to Byju’s mounting legal and financial troubles, as the once-celebrated startup struggles with mounting debt, regulatory scrutiny, and investor disputes.