The Centre has refuted claims that Byju's, the prominent edtech firm, has been cleared of financial fraud by the Ministry of Corporate Affairs (MCA).
The Ministry confirmed on Wednesday that the investigation is still in progress, and any reports suggesting otherwise are misleading and factually incorrect.
The Ministry of Corporate Affairs stated, "The proceedings initiated under the Companies Act, 2013, are ongoing, and no final conclusions should be drawn at this stage."
Once a highly valued company at $22 billion, Byju's has recently faced a dramatic decline. A research note from HSBC now values the company at zero. The same note also assigned zero value to Prosus' nearly 10% stake in Byju's, previously valued at $500 million. HSBC cited multiple legal issues and a funding crunch as reasons for this reassessment.
Recent news reports indicated that the ministry's investigation found no evidence of fund siphoning or account manipulation by Byju's. However, the reports did highlight lapses in the company's corporate governance structure.
Byju's is currently entangled in various legal battles both in India and abroad, including proceedings in the National Company Law Tribunal. The company is attempting to raise $200 million through a rights issue but has been restricted from utilizing any funds by the tribunal. Additionally, Byju's is exploring out-of-court settlements with some of its creditors.