The Centre has launched a probe against BYJU’S over allegations that the Byju Raveendran-led company “misreported” financial statements and siphoned off funds
While a previous investigation by the ministry of corporate affairs flagged compliance lapses at BYJU’S, it had cleared the edtech startup of any financial fraud
This follows reports of a lawsuit filed in a Delaware court last month that accused BYJU’S of siphoning off funds worth $700,000 from its US subsidiaries
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Months after an investigation by the ministry of corporate affairs found corporate governance lapses at BYJU’S, the Centre has ordered another probe into its financial and accounting practices.
The Registrar of Companies in Hyderabad has been ordered to investigate BYJU’S books over allegations that the Byju Raveendran-led company “misreported” financial statements and siphoned off funds, Bloomberg reported, citing sources.
The report, citing sources, said that there were discrepancies in BYJU’S accounts.
It is pertinent to note that while the previous investigation by the Centre flagged compliance issues at BYJU’S, it cleared the company of any financial fraud or any accounting malpractice, citing a lack of evidence.
This follows reports of a lawsuit filed in a Delaware court last month that accused BYJU’S of siphoning off funds worth $700,000 from its US subsidiaries in violation of bankruptcy proceedings.
As per the lawsuit, the edtech startup allegedly diverted the said funds to Whitehat Education Technology. The money was to be repaid to its US lenders who have been at loggerheads with BYJU’S over pending dues.
(The story will be updated soon)
{{#name}}{{name}}{{/name}}{{^name}}-{{/name}}
{{#description}}{{description}}...{{/description}}{{^description}}-{{/description}}
.svg){kind=logo}
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.