The edtech firm is also exploring out-of-court settlements with some of its creditors.
Refuting reports that an investigation by the Ministry of Corporate Affairs has cleared edtech firm Byju's of financial fraud, the Centre said on Wednesday that the probe is still on.
"It is categorically clarified that such reports are factually incorrect and misleading. The proceedings initiated by MCA under the Companies Act, 2013, are still ongoing and no final conclusion should be drawn in this matter at this stage," the ministry said in a statement.
The company, once the apple of investors' eyes, has made headlines only for its free fall recently. A research note by HSBC said that the firm, which was once valued at $22 billion, is now worth zero.
The news reports on the ministry's investigation said it found that Byju's did not siphon off funds or manipulate accounts. There were, however, lapses in the company's corporate governance structure, the reports said.
HSBC's research note assigned zero value to investment company Prosus' nearly 10% stake, once valued at $500 million, in Byju's.
"We assign zero value to Byju's stake amid multiple legal cases and funding crunch... Previously, we valued around 10 per cent stake in Byju's by applying an 80 per cent discount to the latest publicly disclosed valuation," the note said.
Byju's is involved in multiple cases in courts in India and abroad, as well as in the National Company Law Tribunal. It is trying to raise $200 million in a rights issue but has been restrained from utilising any funds by the tribunal.
The edtech firm is also exploring out-of-court settlements with some of its creditors.