New Delhi (India), 19th May 2023: On May 19, edtech behemoth Byju’s denied charges that it was sheltering $500 million through its US-based subsidiary, Byju’s Alpha.
The corporation defined Alpha as a non-operational entity in the United States, devoid of any workers, and expressed surprise at the claims made before a Delaware court.
According to the corporation, the transfers were totally compliant and did not violate any of the stipulations specified in the Credit Agreement or the agreed-upon rights and duties between the parties involved.
The Indian company claimed that even the lenders had not stated that the transfers were illegal under the contractual terms. Lenders argued that because of a default earlier this year, they had the authority to nominate their agent, Timothy R Pohl, to take control of the company.
On May 18, a court hearing in Delaware revealed the accusation against BYJU’s Alpha. The allegations however are ongoing and developments in the case will be discovered in the coming days.
