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Byju’s transferred funds in violation of bankruptcy rules via shell company: Report | Mint

Livemint · 9d

1. Byju's, the embattled tech company, is facing a lawsuit alleging illegal fund transfers from its U.S. affiliate to another entity called Whitehat Education Technology. 2. The court-appointed trustee is seeking the return of nearly $700,000 that was allegedly transferred from accounts under her control, which should have been used to pay creditors. 3. Byju's is already embroiled in a broader conflict with its lenders who claim the company owes them over $1.2 billion, including $533 million that the lenders believe was hidden. 4. The dispute arose from a Byju's affiliate holding the missing $533 million, which was taken over and put under bankruptcy proceedings. Three other units are also under bankruptcy and control of the court-appointed trustee. 5. Byju's officials are accused of moving the $533 million in violation of bankruptcy court rules, with the lawsuit claiming that funds were transferred from the affiliates' Stripe account to a Wells Fargo account linked to Whitehat. 6. Court approval is typically required before funds can be used in U.S. bankruptcy cases, but Byju's officials allegedly transferred the funds without proper authorization, as per the lawsuit.