The Serious Frauds Investigation Office (SFIO), a multi-disciplinary organization under the Ministry of Corporate Affairs (MCA), has started the probe into EdTech major Byju’s alleged financial reporting compliance failures and governance lapses, reported Hindu Business Line on 8 July.
In June, three directors — GV Ravishankar of Peak XV Partners (Sequoia Capital India), Russel Dreisenstock of Prosus, and Vivian Wu of Chan Zuckerberg Initiative — stepped down from Byju’s Board. They cited differences with founder Raveendran. While the statutory auditor of Byju’s — Deloitte, Haskins & Sells — resigned on the same day.
ALSO READ: Govt weighs SFIO probe after auditor exit at Byju’s
The latest move by SFIO comes on top of CA Institute’s Financial Reporting Review Board (FRRB), which is already undertaking a review of Byju’s financial statements for two financial years: 2019-20 and 2020-21, added the report.
SFIO’s action arrived at a time when Byju’s decided to set up a Board Advisory Committee (BAC) to mitigate the backlash on corporate governance issues.
The BAC was formed to advise Byju Raveendran, on Board composition and governance structure. On Wednesday, Raveendran said to shareholders at an emergency Extraordinary General Meeting that the BAC will serve as a working group consisting of independent directors who have relevant experience from diverse corporate fields.
Meanwhile, Byju is mulling taking Aakash Educational Services to the public markets through an IPO for a listing.
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Updated: 08 Jul 2023, 10:05 PM IST
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