NEW DELHI: The troubles for edtech giant Byju’s continue to mount as the Institute of Chartered Accountants of India (ICAI) has initiated a disciplinary investigation into alleged auditing lapses at the firm.
ICAI President Ranjeet Kumar Agarwal confirmed on Monday that the disciplinary committee is examining accusations of negligence and other irregularities tied to the company’s financial audits.
Speaking at a briefing in the national capital, Agarwal highlighted that the ICAI operates a multi-layered disciplinary mechanism. “The matter has been referred to the disciplinary committee by the disciplinary directorate, and investigations are underway,” he said. However, he refrained from revealing whether the directorate had identified any prima facie violations.
Responding to queries, Agarwal noted that the directorate has the authority to either close a matter or escalate it to the committee. “In Byju’s case, the matter has been escalated to the committee, which is now investigating the allegations,” he said.
Yet another blow
This marks yet another blow for Byju’s, which has been grappling with financial and legal challenges. Earlier in March, Agarwal had stated that ICAI found gross negligence on the part of Byju’s auditors and referred the matter to the Financial Reporting Review Board (FRRB) for punitive action. Subsequently, the FRRB escalated the case to the disciplinary directorate.
Byju’s management is already under intense scrutiny, navigating multiple crises, including insolvency proceedings. In October, the Supreme Court overturned a National Company Law Appellate Tribunal (NCLAT) ruling that had previously stalled insolvency proceedings against the company.
The mounting challenges reflect a growing crisis for the embattled edtech giant, as ICAI’s investigation adds to its woes. With more than four lakh members, ICAI’s disciplinary actions could have significant repercussions for Byju’s auditing practices, further compounding the challenges for its leadership.
