Byju Raveendran, the founder of the beleaguered educational technology company Byju’s, is currently facing serious allegations of witness tampering in addition to accusations of financial misconduct as he endeavors to reclaim authority over his faltering business empire. A report from Bloomberg indicates that William R. Hailer, a Nebraska businessman and a pivotal figure in the ongoing legal proceedings, testified in court that Raveendran had sent him a $10,700 plane ticket to Dubai shortly before Hailer was set to provide testimony in federal court. Furthermore, Hailer claimed that Raveendran proposed a sum of $500,000, which prosecutors have suggested may have been an attempt to sway his testimony. This disclosure led U.S. Bankruptcy Judge John T. Dorsey to imply that the allegations could necessitate a federal investigation.
Hailer’s testimony is part of a larger case concerning Raveendran’s purported misappropriation of millions in loan proceeds. Court documents indicate that Raveendran transferred funds to OCI Ltd, a logistics firm based in the UK, while asserting that the money had already been expended. According to Bloomberg, Raveendran later engaged Hailer, a former political consultant, to assist in negotiating a buyout of U.S. creditors owed over $1.2 billion. In one notable instance, Raveendran allegedly transferred $11.25 million to Rose Lake Inc., a company overseen by Hailer, to create an illusion of financial stability for creditors. Hailer testified that these funds were meant to be returned to Raveendran after fulfilling their intended purpose.
While Raveendran maintains his innocence, asserting that his actions were merely a response to aggressive tactics employed by creditors, lenders have accused him of concealing $533 million in loan proceeds. The ongoing legal disputes extend across both U.S. and Indian jurisdictions, with a court-appointed administrator in India currently managing efforts to secure funds for repaying Byju’s debts. The recent allegations of witness tampering may further intensify the scrutiny surrounding Raveendran as he strives to rescue his troubled ed-tech enterprise.
