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The Government Expedites the Inspection of Crisis-hit Byju's Books Amid Rising Problems

Government accelerates review of BYJU'S amid corporate turmoil. Stay updated on inspection progress and latest developments at the edtech firm.
on Feb 27, 2024

The corporate affairs ministry has directed its field officers to speed the review of BYJU'S records and submit the report, a senior official said on Monday, as turmoil brews at the edtech firm.

The ministry, which is enforcing the Companies Act, will decide the next steps after receiving the report from its regional office.

In July 2023, the ministry requested that the Regional Director's office in Hyderabad conduct an inspection of the Bengaluru-based enterprise Think & Learn Pvt Ltd.

Think & Learn Pvt Ltd trades under the name BYJU'S.

On Monday, the senior official stated that the ministry has endeavoured to speed the examination and submission of the BYJU report.

Specific data concerning the inspection could not be obtained immediately.

Last year, the ministry requested the inspection in response to many developments at the edtech company, including its inability to finish the statements and the resignation of the auditor.

A BYJU spokeswoman stated that the inspection is ongoing and that the company has received numerous communications demanding information and documents from time to time.

"It has fully cooperated and provided all relevant responses and documentation to the Ministry of Corporate Affairs.

"The corporation also informed them of the corporate governance initiatives implemented, such as the formation of the advisory council. "All MCA directions have also been followed," the spokeswoman added in a statement.

The Institute of Chartered Accountants of India (ICAI) is also investigating the financial declarations made by the edtech firm for specific fiscal years.

Last Thursday, ICAI President Ranjeet Kumar Agarwal stated that the case is still being investigated.

According to a BYJU spokeswoman, the company has also concluded its financials for FY 2022 and filed the relevant documents with the Registrar of Companies.

"Given all of the above, the company is also hoping for an expedited resolution of the matter," the representative said.

On February 23, BYJU'S shareholders voted overwhelmingly to remove Founder CEO Byju Raveendran and his family members from the board, citing alleged "mismanagement and failures" at what was previously India's hottest IT firm.

However, the corporation declared the voting done in the absence of the founders invalid and ineffectual.

Raveendran, his wife, and brother -- the company's only three board members at the moment -- did not attend the Extraordinary General Meeting (EGM) called by a group of six investors who own more than 32% of Think & Learn.

According to sources close to the investors, more than 60% of shareholders approved all seven motions, which included dismissing the current management, reconfiguring the board, and conducting a third-party forensic inquiry of the company's purchases.

However, sources close to BYJU'S had put the figure at 47%.