homestartup NewsBYJU’s on MCA radar: Probing arm finds 'over a dozen Companies Act violations and irregularities'
BYJU’s on MCA radar: Probing arm finds 'over a dozen Companies Act violations and irregularities'
As per the report, the Regional Director has alleged over a dozen Companies Act violations and financial irregularities at BYJU'S. The ministry, however, is yet to study the report.
Uncertainty continues for edtech giant BYJU's as the investigation arm of the Ministry Of Corporate Affairs (MCA) — Regional Director — has reportedly submitted a detailed report on the alleged financial irregularities.
“As per the report, the Regional Director has alleged over a dozen Companies Act violations and financial irregularities. The ministry, however, is yet to study the report in detail before deciding a future course of action," sources told CNBC-TV18 on Thursday.
Following the analysis, the ministry will decide whether or not to refer the matter for further probe.
Usually, the MCA as per procedure, decides whether to order a further probe, and then the matter is referred either to the Serious Fraud Investigation Office (SFIO) or Directorate General (DG) of Investigations under the MCA.
Meanwhile, reacting to the story, BYJU's spokesperson said, "We are not privy to any report by the MCA or the contents thereof. However, we can confirm that there are no financial irregularities whatsoever in the affairs of the company. In so far as the Companies Act is concerned any observations are likely to be technical non-compliances which have already been duly disclosed in our audited financial statements. We await any formal communication from the MCA."
The future course of action recommended by MCA is yet to be seen.
(Edited by : Amrita)
First Published: Mar 14, 2024 2:33 PM IST
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