- By Aditya Pratap Singh
- Mon, 26 Feb 2024 03:05 PM (IST)
- Source:PTI
Byju's Crisis: The corporate affairs ministry directed its field officers to quickly examine BYJU's books and submit a report soon, a senior official said as problems persist at the Edtech institution.
The Ministry implementing the Companies Act will decide the further course of action after receiving the report from its regional office.
Earlier, in July 2023, the ministry asked the regional director's office in Hyderabad to investigate Bangalore-registered Think and Learn Private Limited, which operates under Byju's brand.
Also read: Paytm Stock Hits 5% Upper Circuit As RBI Asks NCPI To Consider Third-Party Provider Request
On Monday, the ministry sought to speed up the inspection and report submission of BYJU's, a senior official said. The minister ordered an inquiry last year due to the inability to finalize the statements, the resignation of the auditor and many developments in Edtech at that time.
The Institute of Chartered Accountants of India (ICAI) also examines the financial disclosures made by Edtech companies in certain financial years. ICAI Chairman Ranjeet Kumar Aggarwal said last week that the case is under investigation.
Byju's Extraordinary General Meeting
On February 23, BYJU's shareholders unanimously voted to remove founding CEO Byju Ravindran and his family members from the board, alleging "mismanagement and failures".
However, the company said the poll conducted in the absence of the founders was invalid and ineffective.
Founder CEO Ravindran Baiju, his wife and brother -- currently the only three members on the company's board -- abstained from an extraordinary general meeting (EGM) called by the six-member investor group that owns more than 32 per cent stake in the company.
In the end, more than 60 per cent of shareholders voted in favour of all seven resolutions, which included removing current management, reorganizing the board and conducting a third-party forensic investigation into the company's acquisitions, sources close to investors said. However, sources close to BYJU's put the figure at 47 per cent.
