**Mumbai: Major Financial Fraud Allegations Raised Against Byju’s Parent Company**
A significant financial fraud case has come to light against Think & Learn Pvt. Ltd., the parent company of the edtech giant Byju’s. Aditya Birla Finance Ltd. has filed a complaint with the Economic Offences Wing (EOW) of the Mumbai Police, accusing Byju’s founders and directors of colluding to cheat the company of over ₹24.99 crore through fraudulent loan practices between 2020 and 2023.
—
### Background: Student Loan Agreement
According to the complaint lodged on July 18, 2024, Aditya Birla Finance alleged that Byju’s entered into a business agreement in October 2020 to facilitate student loans for enrollment in Byju’s online classes. These classes cater to school students as well as aspirants preparing for IIT-JEE, NEET, UPSC, and other competitive exams.
Under the terms of this agreement, Byju’s was responsible for:
– Processing loan applications through its “TL Pay App”
– Ensuring proper KYC checks of students’ parents
– Guaranteeing repayment of loans if students cancelled classes within a stipulated “free look period”
—
### Alleged Misappropriation of Loan Funds
Despite these contractual obligations, Aditya Birla Finance claims that Byju’s failed to cancel loans even when students withdrew within the permitted timeframe. The company allegedly misappropriated loan funds during this period.
Between October 2020 and March 2023, Aditya Birla Finance disbursed loans worth ₹526.84 crore to 88,500 students. These amounts were transferred directly into Byju’s accounts. While most loans were repaid, an outstanding amount of ₹47.13 crore remains unpaid across 12,531 students.
Internal emails from Byju’s senior executives, including Business Head and Vice President of Business Finance Arun Sharma, reportedly acknowledged that 8,546 students had cancelled classes, involving loans totaling ₹24.99 crore. Despite this, Byju’s allegedly did not inform Aditya Birla Finance and continued to utilize these funds for its own benefit.
—
### Alleged Contract Violations and Collusion
Byju’s is accused of violating the contract by failing to refund loans within the “free look period” and misusing ₹24.99 crore belonging to Aditya Birla Finance and the students’ parents.
The complaint further alleges collusion among Byju’s top management, including:
– Byju Raveendran, Founder of Think & Learn Pvt. Ltd.
– Rijju Raveendran, Director
– Divya Gokulnath, Director
—
### Impact on Parents’ Credit Scores and Legal Action
Byju’s allegedly misrepresented the status of student loans, leading to damage to the CIBIL credit scores of affected parents.
Following Aditya Birla Finance’s complaint, an FIR has been registered at the Vangani Police Station in Mumbai under the following sections of the Indian Penal Code (IPC):
– Section 420 (Cheating)
– Section 120(B) (Criminal Conspiracy)
– Section 34 (Common Intention)
The case is currently under active investigation by the Economic Offences Wing (EOW) of Mumbai Police.
—
**Note:** This case highlights serious concerns regarding loan management and transparency in the edtech sector, emphasizing the need for stricter regulatory oversight.
https://www.freepressjournal.in/mumbai/byjus-faces-allegations-of-2499-crore-financial-fraud-by-aditya-birla-finance-fir-filed-in-mumbai