Proceedings initiated against Byju's under the Companies Act, 2013 are still ongoing, the Ministry of Corporate Affairs has said. In a statement, it called reports claiming the beleaguered edtech had been cleared of financial fraud "factually incorrect and misleading." . No final conclusion should be drawn in this matter at this stage, it said.
On Wednesday, people with knowledge of the investigation into Byju's said the allegations regarding manipulation of accounts and syphoning of funds against the company are unsustainable. As such, the case is not recommended to be referred to the Serious Fraud Investigation Office or any other ministries, departments, or authorities, they said.
The ministry, however, acknowledged that the company has been "slow to recognise the need for strengthening the core principles of good governance by hiring expert professionals for its expanding business horizon," and there were lapses accordingly.
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