A director of Indian tech firm Think & Learn Pvt faces financial penalties for defying a US judge’s order to find out where the troubled company stashed $533 million that jilted lenders say should go to them.

Riju Ravindran, the brother of company founder Byju Raveendran, not only failed to make a serious effort to find out what happened to the cash, but deceived the court, US Bankruptcy Judge John Dorsey said during a hearing Tuesday in Wilmington, Delaware.

“I conclude Mr. Ravindran’s testimony is not truthful,” Dorsey said. Ravindran either knows where the money is being hidden and won’t say, or he refused to find out, Dorsey said. 

The decision was a symbolic victory for lenders, represented by their agent, Glas Trust, and likely puts only limited pressure on Ravindran to cooperate in order to avoid financial penalties. Dorsey said he would hold a hearing to decide how much Ravindran must pay in fines and whether the businessman has any assets subject to court jurisdiction.

Ravindran, his brother and his sister-in-law are the only directors of Think & Learn, which operates under the name Byju’s, according to court testimony. Dorsey has repeatedly expressed frustration over the company’s refusal to say where the money is being held. Earlier this year the judge ordered the arrest of a hedge fund manager who helped Ravindran move the cash. That manager refused a court order to reveal what happened to the money, Dorsey found. 

Dorsey declined to issue an arrest warrant for the Ravindran, who is an Indian citizen currently living in Dubai, a city in the United Arab Emirates, which does not have an extradition treaty with the US. 

A representative for Think & Learn did not immediately respond to a request for comment. During the hearing, Ravindran’s attorney, Sheron Korpus argued that his client did everything he could to find the money, but that his brother, Byju Raveendran and Byju’s wife claimed they didn’t know. 

“Everybody has their own family dynamic,” Korpus told the judge.

The missing money is at the heart of a fight between lenders owed more than $1.2 billion and Think & Learn. The two sides are battling in courts in Delaware and New York. Lenders had previously seized control of a holding company set up by Think & Learn to issue $1.2 billion in debt. That unit, Byju’s Alpha, is now in bankruptcy under Dorsey’s oversight. Ravindran is appealing a decision by Delaware’s Chancery Court approving that seizure.

The US bankruptcy case is BYJU’s Alpha Inc., 24-10140, US Bankruptcy Court District of Delaware (Wilmington).

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Byju’s has announced change in sales strategy.
| Photo Credit: REUTERS

Edtech firm Think and Learn – owner of Byju’s brand – has slashed course subscription fees by 30-40% and hiked sales incentives by 50-100%, according to sources.

Byju’s Founder and CEO Byju Raveendran, who has started handling the company’s daily operations, in a meeting with 1,500 sales associates and managers, has announced change in sales strategy inclined towards scalability and flexibility.

“The annual subscription for the Byju’s Learning App is now available at a yearly early price of ₹12,000 (inclusive of taxes), while Byju’s classes and Byju’s Tuition Centres (BTC) are priced at ₹24,000 and ₹36,000, respectively, for a complete year of classes,” sources privy to the development said.

This is almost a 30-40% reduction in rates, they said.

Byju Raveendran has also promised to settle all dues of the sales team with higher incentives.

“The average sales salary is ₹40,000 per month. So, close a couple of sales, and you can get not just your salary but also clear your arrears. You can earn many multiples of your CTC through this model,” Byju said.

He announced that Byju’s sales associates will receive 100% incentives for the closed sales directly into their accounts the next working day, while managers will receive 20% of the same from the company.

“The average sales salary is ₹40,000 per month. So, close a couple of sales, and you can get not just your salary but also clear your arrears. You can earn many multiples of your CTC through this model,” Byju said.

He said the company has transitioned from a push-based to a pull-based sales model, which is driven by love for learning rather than the fear of missing out.

Byju has instructed managers to act as coaches, focused on supporting and enabling the sales team rather than enforcing strict call quotas.

“Associates will have the flexibility to work on their own terms, with no tracking of the number of hours spent on calls,” a company source said.

Byju’s has asked employees to report any ill treatment, forced sales or rude behaviour of managers directly to him.

A query sent to Byju’s seeking a comment on the development did not elicit any reply.

A Byju’s logo is seen in this illustration taken, June 22, 2023.
| Photo Credit: Reuters

Byju Raveendran, the founder of the edtech company Think and Learn, which owns the Byju’s brand, will handle the firm’s day-to-day operations following the resignation of CEO Arjun Mohan, the company said on April 15.

The company has also announced a major rejig of the business that will consolidate its business into three focused divisions – the learning App, online classes and tuition centres, and test-prep.

“The changes follow an extensive seven-month operational review and cost optimisation exercise led by outgoing BYJU’S India CEO Arjun Mohan. This new phase will also see Byju Raveendran taking a more hands-on approach in spearheading the daily operations of the company,” the company said.

Mr. Mohan will now transition to an external advisory role, lending his expertise to the company during this transformation phase.

Over the past four years, Mr. Raveendran focused primarily on strategic aspects such as raising capital and driving global expansion.

“With this new organisational structure and with the return of Byju Raveendran as the operational leader, BYJU’S is now well-positioned to begin its next chapter of innovation-led growth by launching at scale its new suite of AI-first products that have already received an overwhelmingly positive feedback in the pilot phase,” the statement said.