BYJU's, the leading edtech company, which is being investigated by the Enforcement Directorate for violations of provisions of the Foreign Exchange Management Act (FEMA), has announced the appointment of TV Mohandas Pai, ex Chief Financial Officer of Infosys and Rajnish Kumar, a former SBI Chairman, to its newly constituted Advisory Council. This move aims to strengthen the company's governance mechanism amidst multiple allegations of lapses in corporate compliance. The appointments come weeks after the resignation of three board members - all key investors in the firm - and the beleagured firm’s auditor Deloitte.
Recently, The Hindu Business Line reported that the Serious Frauds Investigation Office (SFIO), a body under the Ministry of Corporate Affairs, is investigating Byju's alleged governance lapses and compliance failures. In a statement, BYJU's expressed its pleasure in welcoming Rajnish Kumar and TV Mohandas Pai to the Advisory Council, emphasising their role in advising and mentoring the company's board and CEO, Byju Raveendran, on critical matters shaping the company's future.
TV Mohandas Pai, a well-known figure in the startup ecosystem, praised the founders of BYJU's for their entrepreneurial skills and expressed his commitment to advising the leadership in evolving governance systems and financial reporting, as well as establishing a strong organisational structure for the company's future.
Rajnish Kumar, in his statement, mentioned his discussions with Byju and Divya, which convinced him of their sincere efforts to address the company's governance structure. When asked about his decision to join BYJU's in an advisory role, Rajnish Kumar said he agreed to assist the company in resolving governance-related issues. Regarding concerns related to the Enforcement Directorate (ED) investigation, Kumar acknowledged BYJU's clarification and stated that the situation would unfold in due course.
TV Mohandas Pai, the former CFO and Board Member of Infosys, co-founder of Akshaya Patra, and founder of Aarin Capital, has also been an early investor in BYJU's. Rajnish Kumar, a renowned figure in the finance world and the former Chairperson of State Bank of India, currently serves as the Chairman of BharatPe.