The development follows his defiance of a court order that directed him to disclose the location of $533 million that the company’s US subsidiary Byju’s Alpha received as part of its term loan proceeds.
Ravindran faces court-imposed financial penalties for his actions, the amount of which will be determined at a future hearing, the firm’s overseas lenders said in a statement on Wednesday.
“In making its ruling, the court found that Ravindran’s testimony lacks all credibility, and that he either knows where the money is being hidden and will not say, or he did not try to find out the location,” the lenders said, adding that they will continue to take all necessary legal actions to recover the “stolen funds”.
Ravindran, who was the director of Byju’s Alpha, a subsidiary Byju’s had set up in 2021 to receive the term loan proceeds was removed as the sole director of the US entity last year by the lenders with the unit being placed under the control of their representative, a move which was also approved by the court. Earlier this year, Byju’s had claimed that the disputed $533 million has been parked with a non-US subsidiary of the firm but did not disclose any additional details.
Byju’s did not comment on the development. Sources close to the company however, said that the contempt order holds no legal weight or practical implications for Byju’s or its stakeholders. Company insiders claim that the court has no jurisdiction over Ravindran, an Indian citizen.