You are the Chief Compliance: ¢ the Chief Comp authority Unk ny thy, write hg in - | Startup Governance St) -ommissioner al the Nationa’ or ate Alvairs Cot of Corporate Affairs, __ fer the Ministry accounta bility, and investor board Board (NSGB)—a regulatory tasked with ensuring ethical transparency in India’s startup © practices. cosy stem., alumnus of a premier f India’s digital future. With a bold it grew rapidly— partnering yu funding from vlobal artup founded by at an ed-tech st as a beacon 0 for rural students, and securir Five years ago, “EduNow"s college of India, was eclebrated mission to democratize learning with schools, onboarding millions of users. investors. - ght of governance failure. Auditors: : and fabricate have resigned, citing withheld information, inflated Eyer lke ctalanatten subscriber data. Several board members quit silently, ital af dues ne: = ‘offs through WhatsApp, non-Pas is Employees allege mass layoffs ¢ gh con, A leaked internal coercion to sign NDAs in exchange for exit compensatl A heaked inter report reveals Personal expenses of the founder were ooked as business expenses, 11 companies owned by family members, Related-party transactions with she i 4 Manipulation of user metrics to secure higher valuations 19 funding rounds. But today, EduNow is imploding under the wei ns full operational control and is preparing for a Despite these, the founder retai dering an IPO. new fundraising round, even consi Meanwhile, a 27-year-old EduNow sales executive dies by suicide, allegedly due f salary for six months. His handwritten to unethical sales pressure and denial 0 note. now viral, reads, “I believed in the dream. But | was punished for asking for my salary. What future does honesty have?” students, and employees feel betrayed. Investors Public anger is erupting. Parents. You are called for are distancing themselves. The media is asking tough questions. an emergency press conference in 6 hours. (a) As the Chief Compliance Commissione ethical decisions, Bae fe GR f g fg (b) Suppose the founder be forced to resign, and you are given the charge. What systemic changes that you would introduce? (c) Should companies that deliver public services (like EduRise in education) be subject to stricter governance norms than typical startups? OR Should startups be exempt from the same governance norms as large listed companics to encourage growth?

Topper: Krishna Goyal · AIR 300 · 2025 · Page 36