Byju's: Fresh Scrutiny As Govt Launches Probe Into Financial Practices - Details

Ed-tech giant Byju's is under investigation again, as the Indian government has initiated a formal probe into the company’s financial practices. This new investigation will focus on potential misreporting and possible diversion of funds, sources told Bloomberg. The authorities aim to uncover any discrepancies or fraudulent activities within Byju's financial statements.

Government Takes Action
The government has assigned the regional office of the Registrar of Companies (RoC) in Hyderabad to examine Byju’s financial documents. The investigation is expected to take up to a year, with investigators investigating whether the company has violated any financial reporting norms or engaged in illicit activities.

Byju's Founder Faces Legal Accusations Amid Financial Troubles
This investigation comes after troubling revelations about Byju's founder, Byju Raveendran. A recent US court ruling highlighted allegations that Raveendran attempted to covertly use loan proceeds to repurchase a software company previously seized by an American trustee. These actions have raised further concerns about the company’s financial integrity.

Serious Allegations of Manipulation and Legal Manipulations
In addition to the ongoing investigation, Nebraska businessman William R. Hailer has accused Raveendran of manipulating the legal system to regain control of Byju’s struggling operations. Hailer claims he was unknowingly used in these efforts, raising questions about the company’s financial maneuvers.

Byju's Struggles with Debt: $1.2 Billion and Counting
Raveendran is currently facing overwhelming financial pressure, with Byju's total debt surpassing $1.2 billion. Attempts to swap this debt for ownership of the educational platform Epic! have failed, leaving the company in a vulnerable financial position.

The Impact of the Investigation on Byju’s Future
As the government probe intensifies, Byju’s must now address these mounting allegations and restore investor trust. The outcome of this investigation could have major consequences for Byju’s financial future and the broader ed-tech industry.