Byju’s Denied Clean Chit from Ministry of Corporate Affairs (MCA)

On 26th June, 2024, the Ministry of Corporate Affairs (MCA) issued a statement to clarify the ongoing investigation into the financial misconduct claims against Byju’s, an edtech company.

Citing sources, a media report issued on 26th June, 2024, had said that the government investigation had cleared the struggling online-education startup of financial fraud.

However, contrary to recent reports, the MCA made it clear that the case is still pending and that no decision has been made.

MCA said in a statement, “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 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,” MCA added.

According to a Bloomberg report, the year-long probe carried out by the MCA had revealed no evidence of fund siphoning or financial account manipulation by Byju’s. 

The report also mentioned that the investigation had uncovered lapses in the ed-tech company’s corporate governance that worsened the financial troubles.