Byju: In a statement released on June 26, the Ministry of Corporate Affairs (MCA) provided clarification regarding the ongoing investigation into the financial misconduct claims against Byju‘s, an edtech company. A media report on Wednesday, citing sources, claimed that the government’s inquiry had found no evidence of financial misconduct against the financially troubled online education business.
Official Statement from MCA
Contrary to previous reports, the MCA made it clear that the case is still pending and that no decision has been made. “There have been recent reports claiming that Byju’s has been cleared of financial fraud in an ongoing investigation by the Ministry of Corporate Affairs (MCA). It is categorically clarified that such reports are factually incorrect and misleading,” the MCA said in statement. “The proceedings initiated by MCA under the Companies Act, 2013, are still on going and no final conclusion should be drawn in this matter at this stage,” it added.
Findings on Corporate Governance
Bloomberg said on June 26 that the MCA’s year-long investigation had turned up no proof of bank account manipulation or fund siphoning. Citing sources, the paper also stated that the probe had found corporate governance shortcomings at Byju, which made the edtech company’s financial problems worse.