The Ministry of Corporate Affairs (MCA) has confirmed that proceedings against BYJU’S under companies law are still ongoing. Last year, the ministry ordered an inspection of BYJU’S books following various issues, including the company’s failure to finalise statements and the resignation of an auditor.
On Wednesday, the MCA clarified that reports suggesting BYJU’S has been cleared of financial fraud are ‘factually incorrect and misleading.’ The ministry emphasised, ‘The proceedings initiated by MCA under the Companies Act, 2013, are still ongoing, and no final conclusion should be drawn in this matter at this stage.’
The scrutiny of BYJU’S financial practices comes amid significant challenges for the edtech giant. Over the past year, BYJU’S has faced several obstacles, including difficulties in closing financial statements on time and the departure of its auditor. These issues have raised concerns about the company’s financial transparency and governance.
Experts in corporate law and financial regulation have highlighted the importance of thorough investigations in such cases. ‘Ensuring corporate compliance is crucial, especially for high-profile companies like BYJU’S,’ said a senior corporate lawyer. ‘The ongoing proceedings by the MCA will help establish clarity and accountability.’
BYJU’S, once celebrated as a leader in the edtech industry, has seen its reputation take a hit due to these ongoing investigations. The company has yet to publicly respond to the latest statements from the MCA, but it remains under close observation by both regulators and stakeholders.
As the investigation progresses, stakeholders and the public eagerly await further updates from the Ministry of Corporate Affairs. The outcome of this scrutiny will have significant implications for BYJU’S future operations and its standing in the industry.
