Embattled edtech firm Byju’s did not siphon off funds or manipulated accounts, a year-long investigation by the government has found.

However, the company did go through lapses in its corporate governance structure, the government added.

The probe by the Ministry of Corporate Affairs (MCA) concluded allegations regarding the manipulation of accounts and siphoning of funds against Byju’s “to be unsustainable” and as such are not recommended to be referred to the Serious Fraud Investigation Office (SFIO), according to people aware of the matter.

The MCA inspection was conducted after complaints were filed by the National Commission for Protection of Child Rights (NCPCR) and the Registrar of Companies (ROC).

These complaints revolved around accusations that Byju’s arm twists its customers for continuing with its products or services, and doesn’t issue refunds to those requesting it, among others.

According to people close to the matter, the report, yet to be made public, found that it is possible that the promoters and directors of Byju’s could have been more transparent with their actions.

However, the MCA report observed that most of the corporate governance issues which were alleged by the directors were in relation to “transparency and independence”.

It was also observed that the Nominee Directors had resigned during the year 2023-24, citing “corporate governance issues, including lack of deliberations with them on the important financial and business policies”.

The report also concluded that Bujy’s has been taking all steps to resolve complaints and grievances pursuant to which many complaints stand resolved and the remaining are under the resolution process.

As of January 31, Byju’s paid customer base had 7.5 million students.

Of the 4,390 complaints made to the edtech company, 2,856 have been resolved and the pending complaints formed 0.02 per cent of the total paid customer base.

There is also “no issue with the change in the accounting policy for revenue recognition,” the report found.

The company used Rs 9,025 crore from 2014 to 2022 for M&A and these acquisitions returned an income of Rs 4,287 crore.

Byju’s is currently involved in multiple cases in courts as well as in the National Company Law Tribunal (NCLT).

The edtech company is trying to raise $200 million in a rights issue but has been restrained from utilising any funds by the NCLT.

Byju’s is also exploring out-of-court settlements with some of its creditors.

Once valued at $22 billion, the edtech company is now worth zero.

Global investment giant Prosus wrote off the value of its shareholding in Byju’s, recording a loss of $493 million in its annual report for FY24. AGENCIES

 Despite significant shifts in funding and valuations, the global fintech industry saw a robust annual revenue growth of 14 per cent from 2021 to 2023, a report showed on Wednesday, adding that India is reaping the benefits of investment in digital public infrastructure (DPI).

Governments, especially in countries such as Brazil and India, are reaping the benefits of investment in integrated DPI, spurring dramatic growth in digital payments and innovation on top, according to the report by Boston Consulting Group (BCG) and QED Investors.

When we look at data, the unified payments interface (UPI) platform processed 13,115 crore transactions in FY24, aggregating to nearly Rs 200 lakh crore in value, compared with 8,376 crore transactions worth Rs 139 lakh crore in FY23.

Fintech leaders have hailed Prime Minister Narendra Modi’s vision to help India lead in digital payments, saying that the country’s fintech landscape is now a hotbed for innovation, reflecting the nation’s fearless spirit.

India is home to more than 10,000 fintech companies working in diverse sectors and segments.

According to the BCG report, perhaps more notably, the industry has initiated a shift from a “growth at all costs” model to one focused on profitable growth, with margins improving by 9 percentage points on average.

“Profitability and compliance are now the cornerstones of fintech success,” said Deepak Goyal, BCG managing director and senior partner and co-author of the report.

“They are essential for attracting continued investment, scaling operations, and building lasting, valuable companies,” he added.

With an annual global profit pool of $3.2 trillion on a base of $14 trillion of total revenue, the global financial services industry is both massive and ripe for innovation.

“While the $320 billion of fintech revenue represents less than 3 per cent today, the exponential advances in GenAI and continued growth in embedded finance means we’re still in the early innings of fintech’s journey, where the separation of winners and losers is becoming apparent,” explained Nigel Morris, QED Investors Managing Partner.

The global fintech market has continued to grow revenues at a robust pace: 14 per cent over the past two years across the board, and 21 per cent when crypto- and China-exposed fintechs are excluded (both at a compounded annual growth rate).

The report outlined four trends that will drive the industry in the coming years — embedded finance will be a $320 billion market by 2030; connected commerce is poised for liftoff; open banking will have a modest impact on banking, but a greater impact on advertising and Generative AI will be a game changer for productivity. AGENCIES

The Finance Ministry on Wednesday advised the chiefs of public sector banks to expedite the opening of more brick-and-mortar branches in villages to further strengthen financial inclusion initiatives taken by the government.

Vivek Joshi, Secretary, Department of Financial Services, Ministry of Finance, told PSB chiefs at a review meeting held here that while significant progress has been made in expanding social security and deepening financial inclusion in the country through various flagship schemes of the government, banks must industriously work towards reaching the last mile to further strengthen financial inclusion initiatives taken by the government.

Jan Samarth portal & Aadhar seeding etc were also discussed during the review meeting meeting. He took a detailed review of the progress made in opening brick-and-mortar branches of banks in unbanked villages.

reviewed the progress under various financial inclusion schemes including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana (PMMY), Stand Up India, PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar Yojana, Ethanol Blending in Petrol (EBP) and Compressed Bio Gas (CBG) financing.

requested banks to give more thrust on improving customer experience across banking services. The review meeting was also attended by senior executives of UIDAI, NABARD, SIDBI , Mudra Ltd. CERSAI & NCGTC. CEO, UIDAI also took part in the meeting to showcase the new product launched by UIDAI to benefit the banks while undertaking Aadhar authentication.
AGENCIES

Three persons including a senior official of Eastern Coalfields Limited, a subsidiary of Coal India Limited (NS:COAL), were arrested by the Central Bureau of Investigation (CBI (NS:CBI)) on Wednesday in connection with the multi-crore coal smuggling case in West Bengal.One of the two persons arrested have been identified as the former General Manager of EC, Amit Kumar Dhar. The identities of the other two, both coal traders, are yet to be disclosed by the Central agency.

The three will be presented at a special court of CBI at Asansol in West Burdwan district on Wednesday, and according to sources, the Central counsel will seek their CBI custody. All the three persons who have been arrested were named in the chargesheet by CBI.

Sources said that the three individuals were summoned at CBI’s Nizam Palace office in central Kolkata for interrogation on Tuesday, following which, they appeared. After a night-long interrogation, CBI took them into custody early Wednesday morning.

On June 21, CBI arrested the current General Manager of ECL Naresh Chandra Saha and civil contractor Ashwini Kumar in relation to the coal smuggling case.

Sources said that the consecutive arrests prove the kind of network the kingpins of the coal smuggling racket had spread in ECL in carrying out their activities.

To recall, the CBI started its investigation in the coal smuggling case in 2020. Later the Enforcement Directorate (ED) also started a parallel investigation in the matter focusing on the money laundering aspect of the case.

The date for filing the final chargesheet in the matter at the same special court has been fixed on July 3, following which, the trial process will start. Sources said that the arrest of these two individuals before that date is extremely significant in effectively carrying out the trial process. AGENCIES

 5G subscriptions are projected to reach around 840 million in India by the end of 2029, accounting for 65 per cent of mobile subscriptions in the region, a new report showed on Wednesday.

According to the Ericsson Mobility Report, total mobile subscriptions in the region are estimated to grow by 1.3 billion in 2029.

“The June 2024 Ericsson Mobility Report shows continued strong uptake of 5G subscriptions. Enhanced Mobile Broadband and Fixed Wireless Access are the leading use cases, with signs that 5G capabilities are influencing service providers’ Fixed Wireless Access offerings,” said Fredrik Jejdling, Executive VP and Head of Networks, Ericsson.

On a global level, researchers estimated that 5G subscriptions will be close to 5.6 billion by the end of 2029.

5G is expected to account for about 60 per cent of all mobile subscriptions by the end of 2029 globally.

Moreover, the report mentioned that India has made large-scale mid-band deployments, reaching over 90 per cent population coverage by the end of 2023.

5G subscriptions in India reached around 119 million and 5G penetration reached 10 per cent by the end of 2023.

Meanwhile, the government began the auction of 5G spectrum worth Rs 96,238.45 crore for telecom services. The total quantum of spectrum being auctioned is 10,522.35 MHz in various bands.

The 5G spectrum auction is witnessing participation from three bidders: Bharti Airtel, Vodafone Idea and Reliance Jio Infocomm. AGENCIES

The 5G spectrum auction saw bids worth over Rs 11,000 crore on Wednesday, with Bharat Airtel emerging as the biggest bidder.

The spectrum demand concentrated on 900 MHz and 1,800 MHz bands in the Rs 96,000 crore worth auction put up by the government.

While the 900 MHz band received bids worth Rs 6,985 crore, the 1800 Mhz band received bids worth Rs 3,579 crore, according to telecom analyst Parag Kar.

In the 2100 MHz band, Airtel was the single bidder at Rs 545 crore and in the 2500 MHz band, Vodafone Idea (NS:VODA) (VI) was the lone bidder, Kar posted on X social media platform.

The telecom department put over 10,500 Mhz spectrum in eight frequency bands – 800 MHz, 900 MHz, 1,800 MHz, 2,100 MHz, 2,300 MHz, 2,500 MHz, 3,300 MHz and 26 GHz.

The 5G spectrum auction witnessed participation from three bidders: Bharti Airtel (NS:BRTI), Vodafone Idea and Reliance (NS:RELI) Jio Infocomm.

According to analysts, the 5G auctions will catalyse the rapid rollout of 5G services across the country, leading to enhanced coverage and vastly improved connectivity.

The latest Ericsson (BS:ERICAs) Mobility Report on Wednesday said that 5G subscriptions are projected to reach around 840 million in India by the end of 2029, accounting for 65 per cent of mobile subscriptions in the country.

A record over Rs 1.5 lakh crore worth of 5G telecom spectrum was sold in 2022, with Bharti Airtel making a successful bid of Rs 43,084 crore. AGENCIES

North Korea launched a ballistic missile toward the East Sea on Wednesday, but the missile exploded in the air, South Korea’s military said, amid a possibility that the North could have test-fired a hypersonic missile.The Joint Chiefs of Staff (JCS) said the missile was launched from an area in or around Pyongyang at around 5:30 a.m. local time, and the intelligence authorities of South Korea and the United States are conducting a detailed analysis.

A military source told Yonhap news agency that the North appears to have test-fired a hypersonic missile, but the test is believed to have ended in failure after the missile flew some 250 kilometres.

A JCS official later told reporters on condition of anonymity that the military is considering the possibility of a hypersonic missile launch, noting that the missile exploded in mid-air over waters off the North’s east coast.

Smoke appeared to emanate from the missile more than previous launches, the official said, raising the possibility of combustion issues. The official added the missile could possibly be powered by solid propellants.

Solid-fuel missiles are considered to be harder to detect ahead of a launch compared with liquid-fuel ones as they require less preparation procedures, such as the injection of fuel.

The launch came after the North slammed the arrival in South Korea of the US aircraft carrier USS Theodore Roosevelt and warned of taking “overwhelming and new” deterrence measures against what it called a “provocative” act.

The aircraft carrier arrived in Busan, 320 kilometres southeast of Seoul, on Saturday ahead of a trilateral exercise with South Korea and Japan.

President Yoon Suk Yeol boarded the aircraft carrier Tuesday, saying the visit symbolised the “firm” US security commitment to South Korea and that trilateral cooperation among South Korea, the US and Japan will become another “powerful” deterrent.

The missile launch also came after the North signed a comprehensive strategic cooperation treaty with Russia during a summit last week between Russian President Vladimir Putin and North Korean leader Kim Jong-un, which includes a pledge for the two countries to come to each other’s aid if attacked.

Hypersonic missiles are on the list of sophisticated weapons North Korean leader Kim Jong-un vowed to develop during a key party congress in 2021.

Such missiles travel at a speed of at least Mach 5 — five times the speed of sound — and are designed to be manoeuvrable on unpredictable flight paths and fly at low altitudes.

In April, the North claimed to have successfully test-fired a new intermediate-range ballistic missile tipped with a hypersonic warhead.

Wednesday’s launch also took place hours after the North sent trash-carrying balloons to the South on Tuesday night for the second straight day.

Since late last month, North Korea is estimated to have launched more than 2,000 such balloons in a “tit-for-tat” move against anti-Pyongyang propaganda leaflets sent by North Korean defectors and activists in the South.

The North last launched multiple short-range ballistic missiles into the East Sea on May 30. AGENCIES

 Three officials at lithium battery maker Aricell were booked on Wednesday for allegedly violating the industrial safety laws in connection with this week’s deadly factory fire that claimed 23 lives, labour authorities said.

The labour ministry’s special investigation team said the government issued an order for Aricell to completely suspend the entire operations of its gutted plant in Hwaseong, 45 kilometres south of Seoul, as of 9 a.m. on Wednesday, reports Yonhap news agency.

As many as 23 employees, mostly foreigners, were killed and eight others injured in the fire that destroyed the lithium battery manufacturing plant on Monday.

The three Aricell officials were booked on suspicion of violating the Occupational Safety and Health Act and the Serious Accidents Punishment Act, said Min Gil-soo, head of the ministry team, noting they may face punishment if any violation of the law is confirmed through a prompt and thorough investigation.

The ministry has also asked about 500 battery manufacturing facilities nationwide to conduct emergency safety inspections to prevent similar accidents, Min said. AGENCIES

Three persons were reported dead, and several others were injured when a lorry collided with a passenger bus in Mankulam in northern Sri Lanka, the local police said on Wednesday.

According to the police, the lorry crashed into the bus that was parked on the roadside due to a breakdown on its way from the northern city of Jaffna to the capital, Colombo, on Tuesday night, reports Xinhua news agency.

The injured were rushed to the local hospital, the police said.

Accidents involving motor vehicles are common in Sri Lanka. There were 2,557 deaths in 2,200 fatal traffic accidents in Sri Lanka in 2023. AGENCIES

 The finance ministry here said on Wednesday it would provide low-interest loans of 17 trillion won ($12.22 billion) next month for corporate investment in the semiconductor industry and will push to extend tax benefits for investment in strategic technologies.

It is part of execution plans for the comprehensive support package worth 26 trillion won announced by President Yoon Suk Yeol last month and designed to support the key industry amid intensifying global competition.

Under the plan, the government will launch a financial support program worth 17 trillion won in July to be available for domestic and foreign companies that make a fresh investment in the chip industry at home, according to the Ministry of Economy and Finance.

It marked a sharp increase from this year’s policy financing of around 3.6 trillion won, reports Yonhap news agency.

A 1.1 trillion-won fund for a chip industry ecosystem will be created to assist fabless and chip material companies.

The government is also pushing to extend the tax credit scheme available for the development of national strategic technologies for three years, which was supposed to expire at the end of this year.

It calls for a 15 per cent tax deduction for facility investment in semiconductors, rechargeable batteries, vaccines, display, hydrogen and other national strategic sectors, and up to 50 per cent tax deduction is available for research and development projects in those fields.

The government plans to invest 5 trillion won in nurturing talent for R&D projects of the chip segment starting 2025 through 2027, compared with its investment of around 3 trillion won from 2022-2024.

The industry ministry will invest 274.4 billion won in R&D projects for semiconductor packaging technologies starting 2025 to 2031 with a goal to enhance the competitiveness of cutting-edge products, such as high bandwidth memory chips. AGENCIES