The Ministry of Corporate Affairs in India is gathering information on education-technology firm, Byju's, after the resignation of its auditor and three board members. The company, which was once emblematic of India’s booming startup scene, has been embroiled in disputes with creditors for months and has cut thousands of jobs. Byju Raveendran, the billionaire co-founder, has reached out to investors to assure them that long-delayed financial information will soon be released.
The ministry is checking to see if Byju’s auditor and board members submitted a report to the government about the company at the time of their resignations. The information gathered will determine if a formal probe will be opened.
“The company has not received any communication from the MCA in connection with the resignation of the auditor and related matters,” according to Zulfiquar Memon, managing partner at MZM Legal, which Byju’s said is its legal representative. The ministry didn’t respond to requests for comment.
Deloitte Haskins & Sells resigned as Byju’s auditor last week, citing a delay in submittal of financial statements. Three directors - GV Ravishankar, Russell Dreisenstock, and Vivian Wu - also resigned from Byju’s board.
The Economic Times originally reported that Byju’s had been inspected by the Corporate Affairs Ministry, which the company has denied having any information about. The decision to open an inspection or investigation will be based on a review of information gathered by the ministry.