QIA moves HC for $235 mn award against Byju's CEO

Bengaluru: The Qatar Investment Authority (QIA), through its subsidiary Qatar Holding, has approached the Karnataka high court to enforce an arbitral award of $235 million (about Rs 2,060 crore) against Byju Raveendran and his investment vehicle, Byju's Investments (BIPL).

The claim includes interest of 4% per annum, compounding daily from Feb 28, 2024, which now adds up to more than $14 million (Rs 123 crore). The dispute stems from Sept 2022, when Qatar Holding extended $150 million in financing to BIPL. The loan, personally guaranteed by Raveendran, was used to fund the acquisition of over 17.8 million shares in Aakash Educational Services. The financing terms expressly barred the transfer of those shares, but the shares were later moved to another Singapore entity controlled by Raveendran, leading to the breakdown of the agreement. After repeated defaults, Qatar Holding demanded early repayment of $235 million. When BIPL and Raveendran failed to meet their obligations, the matter was taken to arbitration in Singapore in March 2024. An emergency arbitrator ordered a global freezing of assets up to the disputed amount, which was later confirmed by the Singapore high court. On July 14, the tribunal issued its final award, directing immediate payment of $235 million plus interest.

The enforcement petition filed in Bengaluru on Aug 12 seeks recognition of the award as a decree of court, alongside an injunction against asset transfers and attachment of movable and immovable assets held by Raveendran and BIPL in India. The case marks the latest escalation in global legal proceedings involving the prominent education-technology founder. An email sent to Raveendran didn't elicit a response till the time of going to press.