Qatar Investment Authority moves Karnataka HC to enforce $235 million award against Byju Raveendran

Qatar Investment Authority (QIA) has moved the Karnataka High Court seeking enforcement of a $235 million arbitral award against edtech firm Byju’s founder Byju Raveendran and his investment firm, Byju’s Investments Pte Ltd (BIPL).

The claim also has an interest component of 4% per annum, compounded daily, from February 28 last year until the payment is made. The accrued interest on the $235 million arbitral award now amounts to $14 million, as per a petition filed by Qatar Holding, a subsidiary of the sovereign wealth fund of Qatar, on August 12.

Qatar Holding had loaned $150 million to BIPL in 2022, with Raveendran personally guaranteeing the repayment, to part fund the acquisition of coaching centre operator Aakash Educational Services.

After multiple defaults on repayment, Qatar Holding ended the financing agreement and sought early repayment of $235 million, the petition said. In March 2024, it initiated arbitration in Singapore and, on July 14 this year, received the final award in its favour.

It said the loan was used to part finance the acquisition of 17.8 million shares in Aakash. Despite a restriction on transferring those shares, Raveendran moved those to another Singapore-based entity controlled by him, the petition said.

Byju’s acquired Aakash Institute in 2021 for nearly $1 billion.

As per the loan terms, if Byju’s defaulted or broke the terms, like transferring pledged shares, Qatar Holdings could terminate the deal and demand a fixed $235 million repayment, the petition said.

The emergency arbitrator in Singapore also issued a global freezing order on the assets and funds of BIPL and Raveendran, up to $235 million. This order, along with the award, was later upheld by the Singapore High Court, it said.

This comes at a time when the edtech firm and Raveendran are grappling with multiple legal battles. A US on July 7 held Raveendran in civil contempt for failing to comply with its orders to share documents related to a case over a $1.2 billion term loan.

On April 10, the US lenders who had extended the term loan filed a lawsuit in the US against Raveendran, his wife Divya Gokulnath and former company executive Anita Kishore. The lawsuit alleged that the three of them planned and executed a scheme to hide and misappropriate $533 million from the money they had lent to Byju’s Alpha, a special purpose financing vehicle the edtech company had established in the US to receive the loan.

Raveendran and Gokulnath earlier said they were planning to sue Glas Trust, which represents the US lenders, and other lenders, seeking $2.5 billion in damages for reputational harm.

ET reported in June that the resolution professional of the edtech firm’s Qatar Holding parent, Think & Learn, had filed lawsuits at the bankruptcy court in India claiming that Raveendran, his wife Gokulnath and brother Riju Ravindran owed compensation to the company for fraudulent transfers of its assets.

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