BENGALURU: The Ministry of Corporate Affairs (MCA) has asked its officials to expedite inspection of the books of edtech company Byju’s and submit the report. The ministry will decide the course of action after receiving the report.
Byju’s said the inspection is ongoing. “The company has received multiple communications requesting information and documents from time to time, and it has cooperated completely and responded with all necessary responses along with documents to the MCA,” Byju’s spokesperson said.
The company also apprised them of the corporate governance measures implemented, including the constitution of the advisory council. All directions of the ministry have also been complied with.
In the meantime, the Company has also closed its financials for FY 2022 and has effected the necessary filings with the Registrars of Companies. Given all of the above, the company is also hoping for an expedited closure of the matter, the spokesperson added.
The company came under the ministry’s scrutiny over compliance issues. According to reports, in July 2023, the ministry had asked the office of the Regional Director in Hyderabad to conduct an inspection of the company Think & Learn Pvt Ltd.
Byju’s has been facing a series of crises including accounting irregularities. On Friday, Byju’s shareholders, who control nearly 60% of the firm’s parent Think & Learn (T&L), voted to remove founder Byju Raveendran and reconstitute the board.
According to PrivateCircle Research, Byju’s promoters together hold a 21% stake in the edtech company. Individually, Byju Raveendran holds 15.90%, whereas Divya Gokulnath and Riju Ravindran have 3.32% and 1.99% respectively.
Also, a group of four investors- Prosus, GA, Sofina and Peak XV along with support from other shareholders including Tiger, Owl Ventures, have approached the National Company Law Tribunal (NCLT) in Bengaluru and filed an oppression and mismanagement suit against the management of the company.
The application is yet to be registered and listed for hearing. According to investor sources, reliefs sought by investors include directing the management to share information with the investors, conducting a forensic audit of the company and declaring the present management as unfit to run the company appointment of a chief executive officer and new board.