Byju’s founders’ risk of defamation case an try to distract from information: Glas Belief

U.S.-based lender agent Glas Belief has alleged that Byju’s founders’ plan to file a defamation case is an try to distract from the information after a number of court docket orders towards them.

The authorized counsel of Byju’s founders, J Michael McNutt, rejected the allegations levelled by Glas Belief, calling it “incomplete and deceptive”.

The counsel of Byju’s founders, Byju Raveendran and Divya Gokulnath, on Thursday (July 17, 2025) mentioned they’re gearing as much as file an over $2.5 billion swimsuit towards Glas Belief and others for harm to their repute and enterprise.

“Byju Raveendran’s newest act of threatening defamation claims towards GLAS Belief and the Time period Mortgage B Lenders is a clear try to distract from the information, approaching the heels of a U.S. federal court docket holding him in contempt. The actual fact of the matter is that each court docket to contemplate the problems has dominated towards Mr. Raveendran and his cohorts,” Glas Belief mentioned.

Glas Belief Firm LLC is the trustee for lenders to whom Byju’s owes $1.2 billion. Byju’s founders have, nonetheless, contested Glas Belief claims.

Glas Belief now controls Byju’s Alpha, which was a special-purpose financing car established by the edtech agency to obtain Time period Mortgage B funds.

Byju’s Alpha has filed a lawsuit towards Byju Raveendran, his co-founder and spouse Divya Gokulnath, and his consigliere Anita Kishore, alleging that every of them co-orchestrated and executed a lawless scheme to hide and steal $533 million of mortgage proceeds.

Glas Belief mentioned judgments exceeding $533 million have been entered towards Raveendran’s allies, “together with for his or her fraudulent conduct”.

“Raveendran’s brother was discovered by a Delaware federal court docket to be untruthful and one of the vital incompetent administrators in Delaware’s historical past. A Delaware federal court docket said its intention to make a legal referral when Raveendran tried to bribe a witness and had held Raveendran in contempt,” Glas Belief alleged.

The U.S. lenders’ agent mentioned that it has always acted inside its rights.

“Mr. Raveendran’s threats are determined and meritless, and the irony of Mr Raveendran threatening to sue for defamation when he continues to unlawfully conceal what occurred to the lacking $533 million needs to be misplaced on nobody,” Glas Belief mentioned.

McNutt alleged that GLAS Belief continues to distract from the true scenario in India.

“It’s incorrect to assert that U.S. Courts have dominated towards Raveendran and his ‘co-horts’ on the related points. The proceedings in Delaware towards Byju have solely simply commenced, and Byju has not even submitted his response to the criticism,” the counsel mentioned.

McNutt mentioned Byju Raveendran has not been discovered responsible of any wrongdoing by any court docket, in any jurisdiction, and the contempt order towards Byju is being contested.

He mentioned that the time period ‘co-horts” is deceptive and offensive.

McNutt alleged that the order towards Suppose & Be taught, its subsidiary and Byju Raveendran’s brother (a director of Suppose & be taught who’s suspended as a result of chapter in India) was with none authorized illustration.

Glas Belief initiated authorized proceedings towards Byju’s and its founders in U.S. courts.

The agent of U.S.-based lenders additionally approached the Supreme Courtroom of India to problem the dismissal of the insolvency case towards Byju’s by the Nationwide Firm Regulation Appellate Tribunal in an enchantment filed by BCCI.

The apex court docket dominated in favour of Glas Belief, and the Company Insolvency Decision Course of (CIRP) litigation towards Byju’s is occurring.

Byju’s founders are contesting the case and filed a plea to take away the Interim Decision Skilled, alleging his hyperlink with Glas Belief via the consultancy agency EY.