The Economic Offences Wing (EOW) of Mumbai Police has registered an FIR against Byju’s founder Byju Raveendran and company directors in a Byju’s fraud case worth nearly Rs 47 crore. The FIR names Think and Learn Pvt Ltd, Byju Raveendran, Rijju Raveendran, and Divya Gokulnath, and was filed at the Vangani police station in Mumbai.
The complaint was filed by Aditya Birla Capital, which provided loans to students enrolling in Byju’s NEET, CET, IIT, and UPSC coaching programs. Between October 2020 and May 2023, Byju’s management handled student loans, including checking CIBIL scores and completing required formalities.
Byju’s offered students a 14-day refund period if dissatisfied with the courses. However, the FIR alleges that the refund period was extended to 45 days, and the loan amounts were retained by the founders even after students canceled admissions. This led to a direct loss of over Rs 24.99 crore and a total loss of approximately Rs 46.90 crore for Aditya Birla Capital.
An initial complaint was filed with the EOW in August last year, prompting a preliminary probe. A formal FIR was registered earlier this month, officially launching the investigation into the alleged misconduct by Byju’s top management.
The Byju’s fraud case highlights growing concerns about financial practices in India’s EdTech sector, particularly regarding student loans and refund policies. Authorities are investigating whether the founders and directors intentionally delayed repayments to gain financial advantage.
This case marks another major legal scrutiny for Byju’s, which has faced multiple complaints in recent years regarding its financial and operational practices. Experts say the outcome could have far-reaching implications for student financing in private coaching platforms.
