India’s Ministry of Corporate Affairs has initiated an inspection of Byju’s account books, as reported by Bloomberg News. According to sources familiar with the matter, the ministry has requested a report within six weeks. The findings of the inspection will determine whether the case will be escalated to the Serious Fraud Investigation Office (SFIO). However, CNBC-TV18’s report on Monday, citing ministry sources, indicated that Byju’s is not currently under investigation by the SFIO. Neither Byju’s nor the ministry has provided immediate comments in response to requests from Reuters.
Once valued at $22 billion and attracting substantial investments during the pandemic, Byju’s has encountered various challenges. These include the resignation of its auditor, severed ties with board members, and delays in payments to a national pension fund, although the company’s lawyer has claimed to have rectified the shortfall. Byju’s is yet to submit its financial statements for 2022 but has assured investors that they will be filed by September, according to a source with direct knowledge of the matter. Furthermore, the company has faced raids by financial crime-fighting agencies over suspected foreign exchange law violations and is currently engaged in a legal dispute with lenders regarding the restructuring of a $1.2 billion term loan.
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