Union Corporate Affairs Ministry expedites inspection of crisis-hit BYJU'S
In July 2023, the ministry directed the office of the Regional Director in Hyderabad to inspect Think & Learn Pvt Ltd, registered in Bengaluru
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New Delhi: The corporate affairs ministry has instructed its field officers to accelerate the inspection of the books of BYJU'S and submit the report, a senior official stated on Monday.
The ministry, responsible for implementing the company's law, will decide the next steps after receiving the report from its regional office. In July 2023, the ministry directed the office of the Regional Director in Hyderabad to inspect Think & Learn Pvt Ltd, registered in Bengaluru and operating under the brand BYJU'S.
On Monday, the senior official mentioned that the ministry is aiming to hasten the inspection and report submission concerning BYJU's. Specific details about the inspection were not immediately available.
Last year, the inspection was ordered following various developments at the edtech company, such as the inability to finalize statements and the resignation of the auditor. The Institute of Chartered Accountants of India (ICAI) is also examining the financial disclosures made by the edtech firm for certain financial years. ICAI President Ranjeet Kumar Agarwal recently stated that the case is under process.
Shareholders of BYJU'S, on February 23, unanimously voted to remove founder CEO Byju Raveendran and his family members from the board due to alleged "mismanagement and failures" at the once-prominent tech startup in India.
However, the company disputed the voting conducted in the absence of the founders as invalid and ineffective.
Founder CEO Raveendran Byju, along with his wife and brother—the current three board members—did not attend the Extraordinary General Meeting (EGM) organized by a group of six investors holding over 32% in Think & Learn.
Ultimately, more than 60% of the shareholders voted in favor of all seven resolutions, including the removal of current management, board reconfiguration, and a third-party forensic investigation into company acquisitions, according to sources close to the investors.
However, sources close to BYJU's reported the number at 47%.
