Indian Ministry of Corporate Affairs (MCA) has ordered an inspection into ed-tech startup Byju's accounts over allegations of governance lapses and compliance failures, reported Bloomberg News citing sources.
The ministry had sought a report on the ed-tech startup in six weeks, claimed the report by Bloomberg that was citing people familiar with the matter. The report further added that the decision to escalate the matter to the Serious Fraud Investigation Office will depend on the findings of the inspection.
Another report by CNBC-TV18 on Monday had stated that the ministry is investigating the Indian ed-tech startup. The report quoting sources also added that currently Byjus is not facing any investigations by the SFIO. It also added that SFIO will take up the investigation after the probe by the ministry into alleged government lapses and financial reporting is complete.
The report by CNBC-TV18 came a day after Hindu Business Line reported that SFIO has already launched an investigation into Byju's case.
Byju's said no communication on inspection from SFIO
Meanwhile, Byju's told Mint that it has not received any communication from the SFIO till date. The ed-tech company in order to deal with the matter has reportedly decided to create a board advisory committee to handle the corporate governance issues.
These reports on the probe by the ministry came after three board members of Byjus stepped down, Deloitte quit as the auditor of the Indian company and the ed-tech startup fell behind on the delayed provident fund payments to the Employees Provident Fund Organisation.
