The Ministry of Corporate Affairs (MCA) has ordered an inspection of the account books of EdTech gaint Byju’s according to Bloomberg.
The Ministry, the agency in a report said, has sought a report from the edtech major in six weeks. The inspection follows an internal assessment of Byju’s state of affairs. Based on the findings, the government would decide if the matter needs to be escalated to the Serious Fraud Investigation Office (SFIO).
Recently, there were reports that the ministry was looking at the possibility of involving the SFIO to look into the matter around the resignation of Deloitte Haskins & Sells LLP and Byju’s delayed financial reporting.
However, BYJU’s has said that it has not received any communications from MCA and said that should a routine inspection take place, it will cooperate.
“I can confirm Byju’s has not yet received any communication from the MCA. They have previously provided appropriate explanations and clarifications to the MCA during routine inspections,” said Zulfiquar Memon, Managing Partner, MZM Legal.
The company has previously provided appropriate explanations and clarifications to MCA during routine inspections.
“Should a routine inspection take place, Byju’s will be happy to cooperate fully and provide all necessary explanations and clarifications,” the statement added.
In the past few weeks, the $22 billion edtech major has seen top-level managerial exits, the resignation of its board members and auditor, and investors slashing its valuations. It has also laid off over 5,000 employees. The firm is also involved in a legal dispute with its lenders over the $1.2 billion Term Loan B.
Byju’s is yet to announce FY22 financial results. In FY21, its net loss jumped 20X year-on-year (YoY) to ₹4,588 crore. Last month, Byju’s former auditor, Deloitte, tendered resignation, citing this delay in filing its financial statements for FY22.