Bengaluru, September 3, 2025 – In a landmark development, the Karnataka High Court has issued an interim order restraining Byju Raveendran, the founder of edtech giant Byju’s, and his investment holding company, Byju’s Investments Pte Ltd (BIPL), from selling, mortgaging, or transferring any properties. The move follows Qatar Holdings LLC’s enforcement petition for a $235 million arbitral award. This update adds another legal layer to the mounting challenges confronting the once-celebrated unicorn.
The Court’s Order: Freezing Assets to Safeguard Enforcement
On Monday, a single-judge bench headed by Justice R. Natraj granted the interim injunction on a petition filed by Qatar Holdings, a subsidiary of the Qatar Investment Authority (QIA). The court directed that both Raveendran and BIPL must refrain from alienating, encumbering, or transferring any properties listed in the enforcement petition until the next hearing.
Qatar Holdings seeks enforcement in India of a final arbitration award issued by the Singapore International Arbitration Centre (SIAC). The award directs Raveendran and BIPL to pay $235 million, along with interest compounded daily at 4% per annum since February 2024. This has already escalated the arrears by an additional $14 million.
During the hearing, Byju’s counsel Rishabh Gupta requested time to respond, citing that the petition had not been formally served upon them. The counsel assured the court that no assets would be transferred in the interim—a similar undertaking had been given in overlapping litigation
How the Dispute Unfolded: From Loan to Litigation
The origins of this legal battle trace back to September 2022, when Qatar Holding extended $150 million to BIPL, backed personally by Raveendran. The loan was intended to finance the acquisition of shares in Aakash Educational Services Ltd. A default led Qatar Holdings to terminate the agreement and demand early repayment.
Following the default, Qatar Holdings initiated arbitration at SIAC in March 2024. An emergency freeze order issued globally in the same year prevented Raveendran and his affiliates from dissipating assets. Singapore’s High Court later upheld this freeze. The final SIAC award was rendered in July 2025, confirming the $235 million liability plus compounded interest.
QIA subsequently moved the Karnataka High Court to recognize and enforce this award as an Indian decree, seeking attachment of assets and appointment of a receiver to ensure compliance. This suit filed in August 2025 set the stage for Monday’s interim injunction.
A Series of Legal Headwinds for Byju Raveendran
This court order adds to a growing list of legal challenges besieging Raveendran:
- Insolvency Proceedings: Byju’s was dragged into insolvency proceedings in June 2024 after defaulting on a ₹158 crore contract with the Board of Control for Cricket in India (BCCI).
- US Litigation: In April 2025, U.S. lenders filed a lawsuit against Raveendran, his wife Divya Gokulnath, and others, alleging misappropriation of $533 million intended for Byju’s Alpha, a U.S.-based financing arm.
- Contempt Notice: On July 7, a U.S. court held Raveendran in civil contempt for failing to comply with document production orders related to a $1.2 billion term loan.
Taken together, these episodes paint a picture of escalating financial pressure and global legal scrutiny.
What’s at Stake
For Qatar Holdings:
- Enforcement through Indian courts secures recovery of the SIAC award, including interest.
- The asset freeze curbs the dissipation of value during litigation.
For Byju Raveendran and BIPL:
- The asset freeze limits their ability to monetise or restructure assets.
- The interim order may apply pressure on them to negotiate or settle.
For Byju’s the Company:
- The founder’s legal woes continue to cast a shadow over organizational stability.
- Investor confidence remains fragile amid ongoing chaos and financial distress.
Next Steps & Legal Timeline
- Next Hearing: The court is scheduled for further hearings soon, which could determine whether the award gets enforced as a decree—paving the way for the sale or attachment of assets.
- Opposing Strategy: The defense may challenge the enforcement application or seek relief under Indian arbitration law.
- Global Implications: The result will influence how international awards are treated in Indian courts and may influence investor sentiment on cross-border recovery.
Broader Implications
- Cross-Border Enforcement: The case highlights how sovereign wealth funds and arbitration mechanisms are increasingly leveraging Indian courts to enforce awards obtained overseas.
- Startup Vulnerability: Byju’s downfall underscores the risks of aggressive debt-fuelled growth, particularly in capital-intensive sectors such as edtech.
- Corporate Governance: The legal tussles expose gaps in transparency, governance, and financial management—raising alarm among creditors, investors, and regulators alike.
Summary Table
| Key Element | Details |
|---|---|
| Court | Karnataka High Court |
| Defendant | Byju Raveendran & BIPL |
| Claimant | Qatar Holdings LLC (QIA) |
| Arbitral Award | $235 million + 4% daily interest |
| Date of Court Order | September 1, 2025 |
| Restrictions Imposed | No alienating, transferring, mortgaging properties |
| Next Steps | Enforcement hearing & asset disclosure |