Byju’s Faces Ongoing Fraud Investigation, Government Refutes Clean Chit Reports

The Ministry of Corporate Affairs (MCA) has clarified that the investigation into allegations of financial misconduct against edtech giant Byju’s is ongoing and has not concluded, contrary to recent media reports suggesting otherwise.

In response to claims circulating in the media that Byju’s had been cleared of financial fraud, the MCA issued a statement on June 26 categorically denying these assertions. The ministry emphasized that no final decision has been made in the investigation, which was initiated under the Companies Act, 2013.

Earlier reports, including one from Bloomberg on June 26, indicated that the MCA’s year-long probe had not found evidence of fund diversion or financial manipulation at Byju’s. However, the investigation did uncover deficiencies in corporate governance practices within the company, which have reportedly contributed to its financial challenges.

The MCA’s statement cautioned against drawing premature conclusions, reaffirming that the investigation process is ongoing and all aspects related to Byju’s financial affairs are still under scrutiny.

The developments highlight ongoing regulatory scrutiny in India’s edtech sector, where Byju’s remains a prominent player despite recent challenges.