The Ministry of Corporate Affairs (MCA) has clarified that the investigation into financial misconduct allegations against edtech firm Byju’s is still ongoing.
This statement was issued on June 26 in response to media reports claiming that the government had cleared Byju’s of financial fraud.
A media report on Wednesday suggested that the government investigation had exonerated the struggling online-education startup.
However, the MCA has refuted these claims, stating that no conclusion has been reached as the proceedings are still underway.
“There have been recent reports claiming that Byju’s has been cleared of financial fraud in an ongoing investigation by the Ministry of Corporate Affairs (MCA). It is categorically clarified that such reports are factually incorrect and misleading,” the MCA said.
“The proceedings initiated by MCA under the Companies Act, 2013, are still ongoing and no final conclusion should be drawn in this matter at this stage,” the statement added.
On June 26, Bloomberg reported that the MCA’s year-long probe had found no evidence of fund siphoning or financial account manipulation.
However, the report also noted that the investigation uncovered lapses in Byju’s corporate governance, contributing to the company’s financial difficulties
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
