OMAHA, NEBRASKA (Diya TV) — Byju Raveendran, founder of the ed-tech giant Byju’s, is being accused of witness tampering and financial misconduct as he struggles to regain control over his struggling business empire.

From what Nebraska businessman William R. Hailer told a U.S. bankruptcy court, an accusation is emerging that Singapore businessmen offered him $500,000 and a $10,700 plane ticket to Dubai shortly before he was set to testify. Allegations which have caused U.S. Bankruptcy Judge John T. Dorsey to state that a potential federal inquiry will be called into the incident. 

Charges of Financial Irregularities

Hailer’s testimony is part of a larger case examining Raveendran’s financial transactions. Court documents show that Raveendran allegedly diverted millions in loan proceeds, claiming that he spent them while transferring them to OCI Ltd, a UK-based logistics firm. Reports show that Raveendran also wired $11.25 million to Rose Lake Inc., a company managed by Hailer, to give the impression of financial stability for creditors.

Hailer stated that the money was intended to be repaid upon completing its intended use. According to prosecutors, this financial ploy was part of a larger scheme to cheat the U.S. creditors whom the company owes more than $1.2 billion.

Raveendran, who denies any wrongdoing, has defended his actions as a response to aggressive creditor tactics. However, lenders accuse him of hiding $533 million in loan proceeds. The legal challenges span jurisdictions, with cases being heard in both U.S. and Indian courts.

In India, a court-appointed administrator is working on raising funds to address Byju’s mounting debts. Meanwhile, in the U.S., the witness tampering allegations have added another layer of complexity to the embattled entrepreneur’s efforts to stabilize his company.

The ongoing legal storm comes at a time when Byju’s is reeling under falling revenues, layoffs, and increased scrutiny from investors. Once hailed as a pioneer in India’s ed-tech revolution, the company now faces a crisis of confidence. 

Analysts say the witness tampering allegations could have severe implications for Raveendran’s legal strategy and the future of Byju’s. Judge Dorsey’s hint at a federal investigation signals possible escalation in the case.

The outcome of this drama is bound to have far-reaching consequences for the beleaguered ed-tech firm as Raveendran continues to fight on multiple fronts to salvage his business empire.