MCA denies giving clean chit to Byju’s, says proceedings still underway

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The Ministry of Corporate Affairs (MCA) on June 26 issued a statement clarifying the ongoing investigation into allegations of financial misconduct involving edtech firm Byju's.

Citing sources, a media report on Wednesday had said that the government investigation had cleared the struggling online-education startup of financial fraud.

However, contrary to recent reports, the MCA clarified that no conclusion has been reached in the matter as proceedings are still underway.

"There have been recent reports claiming that Byju's has been cleared of financial fraud in an ongoing investigation by the Ministry of Corporate Affairs (MCA). It is categorically clarified that such reports are factually incorrect and misleading," the MCA said in statement.

"The proceedings initiated by MCA under the Companies Act, 2013, are still on going and no final conclusion should be drawn in this matter at this stage," it added.

On June 26, Bloomberg reported that the year-long probe carried out by the MCA had revealed no evidence of fund siphoning or financial account manipulation.

Citing sources, the report also mentioned that the investigation had uncovered lapses in Byju's corporate governance that exacerbated the edtech's financial troubles.

(This is a developing story. Please check back for details)