New Delhi: The Centre clarified on Wednesday that an investigation by the Ministry of Corporate Affairs has not cleared edtech firm Byju’s of financial fraud, confirming that the investigation is still ongoing.
“There have been reports claiming that edtech startup Byju’s has been cleared of financial fraud in an ongoing investigation by the Ministry of Corporate Affairs (MCA). It is categorically clarified that such reports are factually incorrect and misleading,” the Ministry stated. (Also Read: No Jobs for Married Women in iPhone Factory in India? Foxconn Faces Discrimination Claims)
The Ministry added that proceedings under the Companies Act, 2013, initiated by the MCA are still ongoing and no conclusions should be drawn at this stage. Byju’s, facing multiple legal battles in courts and the National Company Law Tribunal (NCLT), is attempting to raise 200 million dollars through a rights issue. However, the NCLT has prohibited the company from using any funds for now. (Also Read: Top Stocks On D-Street: Bharti Airtel, SBI, And Vedanta Among 7 In Spotlight Today)
Byju’s is also exploring out-of-court settlements with some of its creditors. Once valued at $22 billion, the edtech company is now worth zero. Global investment giant Prosus wrote off the value of its shareholding in Byju’s, recording a loss of $493 million in its annual report for FY24. (With IANS Inputs)