BENGALURU: Edtech firm Byju’s on Tuesday confirmed that it has not yet received any communication from the Ministry of Corporate Affairs (MCA). As media reports said the Centre has ordered an inspection into the finances of Byju’s, but the company denied it and said they have previously provided appropriate explanations and clarifications to the MCA during routine inspections.
Earlier it was reported that the Serious Frauds Investigation Office (SFIO) has started an investigation into Byju’s alleged governance lapses and also financial reporting compliance failures. The edtech firm said that it has not received any communication from the SFIO.
In a statement on Tuesday, Zulfiquar Memon, Managing Partner, MZM Legal, said, “I can confirm Byju’s has not yet received any communication from the MCA. Should a routine inspection take place, Byju’s will be happy to cooperate fully and provide all necessary explanations and clarifications.”
The edtech firm recently faced many exits, including the resignation of three prominent board members. Recently, it was reported that two independent directors of the firm’s subsidiary tuition chain Aakash Educational Services have resigned from the board.
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Byju’s has been facing many issues including a legal battle with lenders over USD 1.2 billion term loan B (TLB) and the exit of Deloitte. In a recent town hall meeting, co-founder and CEO Byju Raveendran acknowledged the challenges faced by the company and emphasised the team’s talent, strength to overcome obstacles.