India has launched an investigation into Byju's finance and accounting methods, following a prior inspection that revealed corporate governance flaws at the failing online teaching service.
The federal government has directed the regional office of the Registrar of Companies in Hyderabad to audit Byju's books to see if the company misreported financial statements or if money was siphoned off.
There were flaws in Byju's testimonies, which is why the current investigation was launched. They did not define what those shortcomings were. The registrar's office has one year to submit the report.
Byju's, once India's most valuable startup, is fighting for its survival in both Indian and American courts. Last month, India's Supreme Court rejected a bankruptcy tribunal decision that had permitted Byju's to settle debts with a key creditor, pushing the online tutor back into insolvency procedures. The Bangalore-based corporation is currently litigating its claim in a lower court. The firm is currently controlled by an insolvency resolution expert.
A previous year-long review by the Ministry of Corporate Affairs uncovered corporate governance weaknesses at Byju's but found no proof of wrongdoing.
Its founder, Byju Raveendran, has declared that his company, which was once valued $22 billion, is now worth nothing. Prosus NV, one of Byju's key investors, has written off its shareholding.
