Lapses in System

• However, it did go through lapses in corporate governance
• Byju’s used Rs9,025 cr during 2014-2022 for M&As
• These acquisitions returned Rs4,287-cr income
• Its paid customer base of 7.5 mn students

New Delhi: Embattled edtech firm Byju’s did not siphon off funds or manipulated accounts, a year-long investigation by the government has found. However, the company did go through lapses in its corporate governance structure, the government added.

The probe by the Ministry of Corporate Affairs (MCA) concluded allegations regarding the manipulation of accounts and siphoning of funds against Byju’s to be unsustainable and as such are not recommended to be referred to the Serious Fraud Investigation Office (SFIO), according to people aware of the matter.

The MCA inspection was conducted after complaints were filed by the National Commission for Protection of Child Rights (NCPCR) and the Registrar of Companies (ROC). These complaints revolved around accusations that Byju’s arm twists its customers for continuing with its products or services, and doesn’t issue refunds to those requesting it, among others.

According to people close to the matter, the report, yet to be made public, found that it is possible that the promoters and directors of Byju’s could have been more transparent with their actions.

However, the MCA report observed that most of the corporate governance issues which were alleged by the directors were in relation to “transparency and independence”.

It was also observed that the Nominee Directors had resigned during the year 2023-24, citing “corporate governance issues, including lack of deliberations with them on the important financial and business policies”.

The report also concluded that Bujy’s has been taking all steps to resolve complaints and grievances pursuant to which many complaints stand resolved and the remaining are under the resolution process.

As of January 31, Byju’s paid customer base had 7.5 million students. Of the 4,390 complaints made to the edtech company, 2,856 have been resolved and the pending complaints formed 0.02 per cent of the total paid customer base. There is also “no issue with the change in the accounting policy for revenue recognition,” the report found.