After Deloitte, now Byju’s auditor-BDO resigned: Company CEO Byju Ravindran accused BDO Global of blackmailing

After Deloitte, now the auditor company BDO Global of edtech company Byju’s has resigned. BDO (MSKA & Associates) was appointed as the auditor of Byju’s and Aakash Educational Services for 5 years after Deloitte resigned in June 2023.

Deloitte had resigned as Byju’s auditor citing irregularities. According to a Moneycontrol report, BDO had sought a forensic audit on July 17, a day after Byju’s was declared bankrupt.

As per statutory requirements, the auditor can resign within 45 days of initiating such a letter if he is not satisfied with the company’s response.

Byju’s CEO accused BDO of blackmailing him

However, Byju Raveendran, founder and CEO of Byju Raveendran has accused BDO of blackmailing him. In an email sent to a top executive of BDO on September 6, Raveendran said, ‘As you are well aware, Byju’s has complied with every request made by BDO, except those requests that would require us to cross the boundaries of ethics and legality.’

Ravindran further said, ‘Also I would like to remind you that in the virtual board meeting of FY 2022, when the audit report was clean. Then you personally confirmed that after a thorough process of due diligence you did not find any evidence of fraud or misconduct in our international transactions. This assurance came directly from you and we have a record of it.’

The company managed to pay the due fees to BDO

Byju’s is currently going through a financial crisis. However, Ravindran says that the company has still managed to make partial payment of due fees to BDO.

We have a lot of evidence in the form of electronic recordings

“This reflects our willingness to work together during difficult times. However, it appears that the real reason for BDO’s resignation is the management’s refusal to accept your request for back-dated documents and filings. This request is illegal,” Ravindranath wrote in the email.

We have several proofs in the form of electronic recordings where BDO’s senior partners are clearly asking our team to submit several backdated reports. I have even come to know that your senior partner himself recommended the valuation firm for this illegal activity.’

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