Byju’s Founder Offered $500K Job to Witness to Flee and Skip US Court Testimony
William Hailer accuses Byju Raveendran of offering a $500,000 job and a plane ticket to Dubai to avoid testifying in a bankruptcy court case.
Byju Raveendran, the founder of India’s education tech giant Byju’s, is facing serious allegations of attempting to obstruct justice. During a US bankruptcy court hearing, Nebraska businessman William R. Hailer testified that Raveendran urged him to leave the country just days before he was scheduled to testify about the company's legal battles.
Allegations of Witness Interference
According to Hailer, Raveendran sent him a plane ticket to Dubai, priced at nearly $10,700, just two days before his scheduled testimony. Hailer also claimed that Raveendran sweetened the deal by offering him a lucrative job with a $500,000 annual salary to begin immediately upon his arrival in Dubai.
“He encouraged me not to testify,” Hailer told the court. “He said I should come to Dubai and the salary would start on day one.” Hailer shared these details during a hearing overseen by US Bankruptcy Judge John T. Dorsey in Wilmington, Delaware.
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Federal Investigation Under Consideration
Judge Dorsey stated that the allegations warranted a referral to federal prosecutors. Typically, such referrals involve notifying the US Justice Department about potential criminal activity for further investigation.
These revelations add to the challenges faced by Byju’s and its founder, who are navigating complex legal proceedings in both the US and India.
The Struggle to Regain Control
Hailer’s testimony highlighted Raveendran’s attempts to reclaim control over key assets within the Byju’s empire, particularly the US-based education software company Epic!. Raveendran reportedly tried to negotiate with creditors owed more than $1.2 billion, aiming to acquire Epic! by swapping the debt for ownership. However, these efforts ultimately failed, and creditors are now working with a court-appointed trustee to sell the company to recoup losses.
In a written declaration, Hailer expressed frustration with the situation, stating, “Over the last several months, I have been used as a pawn in Byju’s manipulation of the law.”
Hailer is testifying in support of the trustee, who plans to sell Epic! to raise funds for creditors, including US-based lenders.
Byju’s Legal Challenges
The allegations against Raveendran are just one part of a larger legal battle involving Byju’s. Lenders have accused the company of concealing $533 million in loan proceeds meant for debt repayment.
The company is also undergoing insolvency proceedings in India, where a court-appointed official has been tasked with raising funds to pay off creditors.
Earlier this year, another Byju’s business associate fled the US just before he was scheduled to testify, leading to a contempt of court ruling.
What’s Next?
As the case unfolds, the focus remains on whether federal prosecutors will take action against Raveendran. Meanwhile, creditors and trustees continue to push for the sale of Epic! to recover their losses.
Neither Byju’s representatives nor Raveendran’s legal team responded to requests for comment regarding these allegations.
The case is filed as Epic! Creations, Inc., 24-11161 in the US Bankruptcy Court, District of Delaware.
Also Read: Byju's Founder Loses Control of Company as Court Declares Insolvency
