Centre begins inspection into Byju’s financials
NEW DELHI : The ministry of corporate affairs (MCA) has begun an inspection of the books of edtech firm Byju’s as corporate governance concerns mount following the resignation of its auditor as well as three shareholder directors. MCA has begun an inspection of Think and Learn Pvt.
Ltd on a suo moto basis, according to two government officials directly aware of the development. “The inspection of Byju’s books of accounts by MCA has been started after certain significant developments at Byju’s over the past few weeks," said the first person.
Both people spoke on the condition of anonymity, terming the matter sensitive and highly confidential. According to the two people, the developments that prompted the MCA inspection include the sudden resignation of Deloitte Haskins and Sells as the company’s auditor, inordinate and repeated delays in filing the company’s financials with the Registrar of Companies (RoC), and the abrupt resignation of key shareholder directors from the board.
The scope of the MCA inspection will entail thoroughly scrutinizing Byju’s books of accounts to ensure that there is no breach of money-laundering norms or non-compliance with any of the extant regulations under the Companies Act, according to the two people. On 22 June, Deloitte resigned as Byju’s auditor soon after representatives of Byju’s three influential backers—Peak XV, Prosus NV, and the Chan-Zuckerberg Initiative—quit Byju’s board, citing differences with founder Byju Raveendran on key operational issues.
“An inspection of books of accounts of Byju’s has been ordered under section 206 of the Companies Act," said the second person, a government official. “Officers of the company (Byju’s) have to produce the documents sought by the
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