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Corporate Affairs Ministry Expedites Inspection Of Crisis-Hit BYJU'S

On Monday, the ministry sought to expedite the inspection and submission of the report regarding BYJU's. Specific details about the inspection could not be immediately ascertained.

Corporate Affairs Ministry Expedites Inspection Of Crisis-Hit BYJU'S
POSTED ON February 26, 2024 4:54 PM

The corporate affairs ministry wants a speedy investigation of books of the beleaguered edtech, BYJU’s. According to a senior official who spoke to the news agency PTI, the ministry has sought to expedite the inspection and submission of the report regarding the company on Monday.

The ministry, which is implementing the companies law, will decide the further course of action after receiving the report from its regional office. 

In July 2023, the ministry had asked the office of the Regional Director in Hyderabad to conduct an inspection of the company Think and Learn Pvt Ltd, which is registered in Bengaluru.  

Specific details about the inspection could not be immediately ascertained. 

Last year, the minister ordered the inspection in the wake of various developments at that time at the edtech company, including its inability to finalise the statements and resignation of auditor. 

The Institute of Chartered Accountants of India (ICAI) is also looking into the financial disclosures made by the edtech firm for certain financial years. 

ICAI President Ranjeet Kumar Agarwal, last week, said the case is under process. 

On February 23, shareholders of BYJU'S voted unanimously for removing founder CEO Byju Raveendran and his family members from the board over alleged "mismanagement and failures" at what was once India's hottest tech start-up. 

However, the company had called the voting done in the absence of founders as invalid and ineffective. 

Founder CEO Raveendran Byju, his wife, and brother -- the only three members on the company board as of now -- stayed away from the Extraordinary General Meeting (EGM) called by a group of six investors, who collectively hold more than 32 per cent of Think and Learn. 

In the end, more than 60 per cent of the shareholders voted in favour of all the seven resolutions, which included removing the current management, reconfiguration of the board, and a third-party forensic investigation into acquisitions done by the company, sources close to the investors had said. However, sources close to BYJU's had put the number at 47 per cent. 

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