The Karnataka High Court has issued an interim injunction against Byju Raveendran, the founder of the embattled edtech firm Byju's, prohibiting him from selling or transferring any assets. This decision stems from a petition filed by Qatar Holdings LLC, a subsidiary of Qatar Investment Authority (QIA), which is seeking to enforce a $235 million arbitral award in India. Qatar Holdings had initially lent $150 million to Byju's in 2022 to partly finance the acquisition of shares in Aakash Educational Services Ltd. This loan was personally guaranteed by Raveendran.

The dispute originated in September 2022 when Qatar Holdings provided the loan to Byju’s Investments Pte Ltd (BIPL), with Raveendran as the personal guarantor. The agreement for the loan explicitly prohibited the transfer of the 17.89 million shares in Aakash Educational Services Ltd that were acquired using the funds. However, these shares were subsequently transferred to another Singapore-based company controlled by Raveendran, constituting a direct violation of the contractual clause.

Following repeated defaults on the loan, Qatar Holdings cancelled the financing deal and demanded early repayment of $235 million. Both BIPL and Raveendran failed to meet their contractual and personal guarantee obligations, leading Qatar Holdings to pursue arbitration in Singapore. In March 2024, an emergency arbitrator ordered a global freezing of assets up to $235 million belonging to Raveendran and BIPL to prevent their dissipation, an order later upheld by the Singapore High Court. On July 14, the Singapore International Arbitration Centre (SIAC) directed the immediate payment of $235 million to Qatar Holdings, along with interest compounded daily at 4% since February 2024. This interest has already added over $14 million, pushing the total amount owed to more than $249 million (approximately ₹2,183 crore).

During the proceedings in the Karnataka High Court, counsel for Qatar Holdings requested an injunction against asset transfers and sought the attachment or sale of movable and immovable properties owned by Raveendran or BIPL in India. Rishab Gupta, counsel for Byju’s, informed the court that his client had not been served a copy of Qatar Holdings’ petition and requested additional time to file objections. The court then instructed Qatar Holdings to furnish the petition to Byju’s. Gupta also stated that the partial award from SIAC is being challenged before a Singapore High Court and offered an undertaking not to alienate any assets until the next hearing, noting that a similar undertaking had been given in a separate matter.

Byju’s, once celebrated as India’s leading edtech startup, has faced a cascade of challenges. The company was dragged into insolvency on June 16, 2024, after defaulting on a ₹158 crore payment to the Board of Control for Cricket in India (BCCI) under a jersey sponsorship agreement. This deal, initially signed in 2019 and extended until November 2023, collapsed due to payment failures. Furthermore, in the United States, Byju Raveendran has been accused of contempt of court in an unrelated dispute. In April, Byju’s Alpha Inc., a US-based special purpose finance vehicle, sued its parent company, Raveendran, his wife Divya Gokulnath, brother Riju Ravindran, and executive Anita Kishore, alleging the theft of $533 million. This case is currently before the US Bankruptcy Court for the District of Delaware. Founded in 2011, Byju’s aggressive expansion led to significant financial strain, regulatory scrutiny, and numerous disputes with creditors, marking a dramatic downfall for the once-acclaimed startup.