Byju Raveendran, the founder of India’s once-celebrated ed-tech company Byju’s, is under scrutiny after being accused of attempting to secretly regain control of his struggling startup by hiding millions in loan funds. These startling revelations come at a time when Byju’s is battling legal and financial issues both in India and the United States, with over $1.2 billion in outstanding debts.

A Bloomberg report, based on recent court filings, reveals that Raveendran allegedly used funds hidden in OCI Ltd., a UK-based logistics firm, to secretly attempt to buy back a software company that had been seized by a U.S. trustee. Despite claiming that all loan proceeds were spent on company operations, the new filings suggest Raveendran used the money to curry favor with creditors, including paying Nebraska businessman William R. Hailer to facilitate a buyout.

Hailer, a former political consultant, allegedly received $11.25 million from Raveendran to make it appear as though Byju’s had sufficient funds. However, the money was reportedly intended to be returned to Raveendran after the transaction was completed, further complicating the situation.

This action is just the latest in a series of accusations that Raveendran has concealed funds, with creditors claiming that $533 million in loan proceeds were hidden, adding to the company’s mounting financial problems. In India, Byju’s is currently undergoing insolvency proceedings, while its legal woes continue in the U.S.

Raveendran has vehemently denied any wrongdoing, stating that his actions were a response to aggressive tactics used by creditors specializing in extracting money from distressed companies. However, critics argue that this move raises questions about corporate ethics and transparency.

As the legal battle unfolds, the focus will be on whether Raveendran’s alleged actions were a legitimate response to financial pressure or part of a larger strategy to regain control of Byju’s amidst its growing debt crisis.