SUMMARY
The ministry will reportedly decide the next course of action after the submission of the inspection report, which has already been delayed by three months
BYJU’S is being probed for alleged governance lapses and compliance issues
In July last year, the ministry had directed the office of the Regional Director in Hyderabad to conduct an inspection of the company’s parent
Ramping up the scrutiny of embattled BYJU’S, the Ministry of Corporate Affairs (MCA) has reportedly directed its field officers to expedite the inspection of the books of the edtech giant.
A senior official told news agency PTI that the ministry will decide the next course of action based on the inspection report.
“Once the inspection report is submitted, based on its findings, the ministry will decide if investigation is needed in the company,” the official added.
Alleged governance lapses and compliance issues at the company are also being probed. A separate report by Moneycontrol, quoting a government official, claimed that the submission of the report has already been delayed by three months.
The directive comes months after the MCA, in July 2023, first directed the office of the Regional Director in Hyderabad to conduct an inspection of the company’s parent, Think & Learn. The edtech major is registered in Bengaluru.
The officials were supposed to submit a detailed report in six weeks after an internal assessment of BYJU’S state of affairs. However, delays continue to mar the submission of the report.
The ongoing row that has engulfed the once flourishing startup originates primarily from the lack of clarity on BYJU’S audited financials.
Earlier this year, the startup reported its financial report for the year 2021-22 (FY22) after a delay of nearly two years. It also presented its financial statements for FY21 nearly 18 months after the end of the year.
The edtech major is also yet to file its financial statements for FY23.
The latest development comes at a time when the Institute of Chartered Accountants of India (ICAI) is also finalising its report on the auditing process of the startup
The delays in filing financial statements, coupled with several other corporate governance lapses, have triggered a massive uproar from the company’s investors. At the recently culminated extraordinary general meeting (EGM), the investors voted for the ouster of the company’s founder and chief executive officer (CEO) Byju Raveendran and the reconstitution of the edtech’s board.
Meanwhile, the Karnataka High Court is likely to hear a plea filed by BYJU’S against the investors and the EGM on March 13. However, Raveendran, in his most recent communication with employees, expressed confidence that the outcome will be in his favour.
