MCA Expedites Inspection Of Byju's Book: Report
The Ministry of Corporate Affairs (MCA) has reportedly directed its officials to expedite the inspection of the books of Byju's and submit the report, according to media reports. The ministry will decide the further course of action after receiving the report.
In July last year, the ministry had asked the office of the Regional Director in Hyderabad to conduct an inspection of the company Think & Learn, parent company of Byju's.
On Monday, a senior official from the ministry said they are working to speed up the inspection and report submission for BYJU's. Details about the inspection are not available yet.
Last year, the minister ordered the inspection due to various governance issues at Byju's, such as its delayed financial statements and the resignation of the auditor.
The Institute of Chartered Accountants of India (ICAI) is also investigating the financial disclosures made by the edtech firm for certain years. ICAI President Ranjeet Kumar Agarwal stated last week that the case is in progress.
On 23 February, Byju's investors unanimously voted to replace the founder and CEO Byju Raveendran and his family members from the board due to alleged mismanagement and failures at the once most valued Indian startup.
However, Byju Raveendran called the voting invalid because the founders were not present. Raveendran, his wife, and brother, who are the only three board members at the moment, did not attend the Extraordinary General Meeting (EGM) called by a group of six investors holding more than 32 per cent of the company.
Moreover, over 60 per cent of shareholders voted in favor of the seven resolutions, including removing the current management, restructuring the board, and conducting a third-party forensic investigation into the company's acquisitions, according to media reports. However, sources close to Byju's state the number to be 47 per cent.
