Government keeping a close eye on Byju’s after delays in tax filings: Report

India’s biggest ed-tech startup Byju’s may be under scrutiny from the central government after a significant delay in submitting its tax filings for the financial year. The Ministry of Corporate Affairs sent a written notice asking Byju’s to explain the 17-month delay in filing its audited accounts for the financial year ending in March 2021, reported Bloomberg. The ministry had asked for clarification earlier in the month. Meanwhile, Byju’s is finally preparing to file its annual returns next week, reported the Mint. The company’s potential troubles with the MCA come just a month after Member of Parliament, Karti Chidambaram had asked the government and the Serious Fraud Investigation Office to look into the startup for failing to submit its financial records in time.

I have written to the #SFIO to look into the financing of @BYJUS it’s imperative that a thorough investigation is launched. @MCA21India @sequoia pic.twitter.com/DfBUNhNxNU

— Karti P Chidambaram (@KartiPC) July 21, 2022

While private companies can still submit accounts seven months after the financial year-end, further delays can attract prosecution and fines. Such delays are not taken lightly as they can indicate that the accounts were not finalised or audited in time. Byju’s’ 17-month-long delay, which came after the government had extended the last date of submission for FY21 due to the COVID-19 pandemic, is unusual. The delay might have been due to the Tiger Global Management-backed startup going on an acquisition spree over the past few years. The company spent over $2.5 billion in 2021 alone as it acquired domestic companies like Aakash Educational Services Limited and Great Learning, as well as foreign entities like GeoGebra. The company has been looking to expand into services like exam preparation, higher education MOOCs, and tuition centres, along with bringing tech services like virtual reality, artificial intelligence, and educational gaming services under its banner. This flurry of acquisitions, which is expected to continue, may have prevented the company from submitting its annual financials on time. “The delay is due to multiple acquisitions by Byju’s during the financial year and its plans for further acquisitions in the subsequent financial year,” a person with knowledge of the matter told the Mint. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.