No conclusion yet in Byju’s case, MCA clarifies

It is almost a year since the MCA initiated the investigation on Byju’s.
No conclusion yet in Byju’s case, MCA clarifies

BENGALURU: The Ministry of Corporate Affairs (MCA) on Wednesday clarified that reports claiming edtech firm Byju’s has been cleared of financial fraud in an ongoing probe are factually incorrect. It said, “The proceedings initiated by MCA under the Companies Act, 2013, are still going on and no final conclusion should be drawn in this matter at this stage.”

Earlier on Wednesday, it was reported that the MCA’s probe has offered relief to the edtech firm as it found allegations regarding manipulation of accounts and siphoning of funds against Byju’s to be unsustainable. Reports also said the MCA observed that most of the corporate governance issues alleged by the directors were in relation to transparency and independence.

It is almost a year since the MCA initiated the investigation on Byju’s. The ministry had ordered a probe after Byju’s auditor Deloitte Haskins & Sells, the biggest audit firm, exited due to delay in filing of FY22 financial results. Byju’s immediately announced appointment of BDO (MSKA & Associates) as statutory auditors for the year commencing from FY22.

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Meanwhile, France-based Teleperformance Business Services has withdrawn bankruptcy plea against the etecth firm. The Bengaluru bench of the National Company Law Tribunal (NCLT) asked Teleperformance to file a memo as it wished to withdraw the insolvency plea.

Last month, TNIE reported that the edtech firm was exploring out-of-court settlements with Teleperformance and Surfer Technologies. At least seven petitions are reportedly pending against the firm with the NCLT.

The NCLT had issued notices to Byju’s parent Think and Learn in three cases due to claims of unpaid dues. Publishing company McGraw Hill, BPO service provider Cogent E-services and supplier of automation control products AG Automation had filed cases against Byju’s, and these cases will be heard on July 3.

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