Byju’s Faces Controversy Over Alleged Hidden Funds and Luxury Cars

Byju's Faces Controversy Over Alleged Hidden Funds and Luxury Cars

VoM News Desk | September 13, 2023 | 05:55 AM IST | Breaking News | Follow on Google News

Byju’s Faces Controversy Over Alleged Hidden Funds and Luxury Cars. Image/Bloomberg

Hidden Funds and Luxury Cars Raise Questions

In a surprising turn of events, Byju’s, one of India’s leading tech companies, is facing allegations of concealing $533 million in an obscure hedge fund. Lenders seeking to recover the funds have raised concerns over the transparency of Byju’s financial transactions. According to the lenders, Byju’s transferred the substantial amount to Camshaft Capital Fund, a relatively unknown hedge fund. Notably, Camshaft Capital Fund had previously listed its primary place of business as an IHOP pancake restaurant in Miami, raising further doubts about its legitimacy.

Questions Surrounding the Hedge Fund

The lenders have questioned why Byju’s entrusted such a significant sum to Camshaft Capital Fund, especially considering the hedge fund’s apparent lack of formal training and expertise in investment management. Additionally, the situation has been further complicated by the registration of luxury cars, including a 2023 Ferrari Roma, a 2020 Lamborghini Huracan EVO, and a 2014 Rolls-Royce Wraith, in the name of William C. Morton, the founder of Camshaft Capital Fund.

Ongoing Legal Battle

This controversy is the latest development in an ongoing legal battle between Byju’s and its lenders. The lenders assert that the $533 million represents collateral for a $1.2 billion loan, which they claim is in default. On the other hand, Byju’s accuses the lenders of engaging in predatory tactics.

Byju’s Attempts to Resolve the Situation

Byju’s, once India’s most valuable startup, is actively seeking a resolution with its creditors. Recently, the company surprised the industry by proposing to buy back the loan within six months. To finance this repayment, Byju’s is in discussions to sell some of its overseas assets to private equity and strategic investors.

Statements from Involved Parties

In response to the allegations, Byju’s emphasized that it is not a party to the Florida court proceedings and has not received copies of the lawsuit. Camshaft Capital Fund also vehemently denied the statements made in the lenders’ court filing.

Complex Financial Transactions and Unresolved Disputes

This case highlights the complexity of financial transactions involving tech giants like Byju’s and the potential for disputes to arise when large sums of money are involved. The ongoing legal battle serves as a reminder of the importance of transparency and clear agreements in financial dealings.

VoM News Desk

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