In a recent development in the BharatPe-Ashneer Grover saga, the fintech unicorn has filed civil and criminal lawsuits against Ashneer Grover, the company’s now-ousted co-founder, his wife Madhuri Jain Grover, the company’s former head of controls, and Grovers’ relatives in connection with the misappropriation of company funds.
BharatPe confirmed the news happiness india. “BharatPe has taken civil and criminal actions against former co-founder and chief executive Ashneer Grover, former head of controls Madhuri Jain Grover and other related parties of their family over various claims, including misappropriation of company funds,” a BharatPe spokesman said.
“We have full confidence in the courts and authorities and are confident that justice will be served. As the matter is before the court, we have no further comment to make at this time,” the spokesperson added.
The company has also reportedly asked the Grovers to pay back £88.6million with 18% on the scammed funds. The board had previously accused Grover and his family of “widespread embezzlement” of company funds. The fintech said in May this year, “The Grover family and their relatives have been involved in an extensive embezzlement of company funds, including but not limited to the creation of fake vendors through which they deducted money from the company’s expense report.”
The issue dates back to January this year, when the Sequoia Capital-backed fintech launched its corporate governance review, hiring accounting firm Alvarez & Marsal (A&M) and law firm Shardul Amarchand Mangaldas & Co to assist the board and management on the review to support the management of the company. It also hired consulting firm PwC to determine “willful misconduct and gross negligence by a former founder”.
The audit report claimed that Madhuri, who was then the company’s head of controls, approved payments to vendors and consultants that did not exist. She is said to have used company funds to fund her personal expenses, including beauty treatments, electronics and vacations for her family, as well as paying her personal employees.
The audit report also mentioned that on October 21, 2021, the General Directorate of GST Intelligence (DGGI) raided BharatPe’s headquarters, seeking details of payments to specific providers. The company then informed the GST authorities that the providers in question did not exist. As a result, Madhuri was removed from her position as Head of Control at BharatPe at the end of February this year and her ESOPs were annulled by the fintech firm.
Notably, the fiasco between BharatPe and Ashneer Grover began in January this year, when Grover got into a fight with Uday Kotak after voice recordings surfaced of him berating an executive at the latter’s bank. In the recording, Grover can be heard threatening staff at Kotak Mahindra Bank after failing to get a loan from the lender to invest in Nykaa’s IPO.
After the February incident, Grover went on hiatus until late March, as did Jain a week later. In March, BharatPe’s board fired Grover from all positions, including his title as founder of the fintech company. However, Grover claimed that CEO Suhail Sameer colluded with the company’s investors and manipulated him into retiring and demanded that Sameer be removed from the company.
In May, the fintech firm had taken “necessary action” against former co-founder Ashneer Grover to reclaim his restricted shares under the shareholders’ agreement.
