Mumbai: A major financial fraud case has surfaced against Think & Learn Pvt. Ltd., the parent company of edtech giant Byju’s. Aditya Birla Finance Ltd. has lodged a complaint with the Economic Offences Wing (EOW) of the Mumbai Police, alleging that Byju’s founders and directors colluded 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 filed on July 18, 2024, Aditya Birla Finance alleged that Byju’s entered into a business agreement in October 2020 to facilitate student loans for enrolling in Byju’s online classes covering school students, IIT-JEE, NEET, UPSC, and other competitive exams.
Under the 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 clauses, Aditya Birla Finance claims that Byju’s failed to cancel loans even when students withdrew within the permitted timeframe, allegedly misappropriating loan funds. From October 2020 to March 2023, Aditya Birla Finance disbursed loans to 88,500 students, amounting to ₹526.84 crore, directly into Byju’s accounts. While most loans were repaid, an outstanding ₹47.13 crore remains unpaid across 12,531 students.
Internal emails from Byju’s senior executives, including Business Head Vice President of Business Finance Arun Sharma, acknowledged that 8,546 students had cancelled classes, involving loans worth ₹24.99 crore. Despite this, Byju’s allegedly did not inform Aditya Birla Finance and continued to use the funds for its own benefit.
Alleged Contract Violations and Collusion
Byju’s allegedly violated its contract by not refunding loans within the “free look period” and misused ₹24.99 crore belonging to Aditya Birla Finance and students’ parents. The complaint 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 is also accused of misrepresenting student loan status, which damaged the CIBIL credit scores of parents. Based on Aditya Birla Finance’s complaint, an FIR has been registered at Vangani Police Station, Mumbai under: Section 420 (Cheating), Section 120(B) (Criminal Conspiracy), Section 34 (Common Intention) of IPC
The case is now under active investigation by the Economic Offences Wing (EOW).
