BharatPe co-founder Ashneer Grover.
Credit: Twitter/@Ashneer_Grover
Bengaluru: Following more than two years of lengthy and dramatic battle in the courtroom and on social media, BharatPe on Monday said that it has arrived at a definitive agreement with its former co-founder Ashneer Grover. This agreement was taken into consideration because there was a possibility of Grover’s wife Madhuri Jain being arrested, informed sources told DH.
“As part of the settlement, Mr. Grover will not be associated with BharatPe in any capacity nor be a part of the shareholding of the company. Both parties have decided not to pursue the cases filed,” said the fintech company in a statement.
The Delhi Police Economic Offences Wing (EOW) had arrested Deepak Gupta, a relative of Ashneer Grover, last week, in connection with allegations of embezzlement of funds from BharatPe. EOW’s investigation had found evidence against Gupta and Grover’s wife, said a source familiar with the matter.
Gupta was supposed to be presented on Monday in Delhi’s Saket court, which would’ve possibly led to his and Jain’s arrest. This is what triggered the settlement, added the source.
“I will no longer be associated with BharatPe in any capacity, nor be part of the capital table. Both parties have decided not to pursue cases filed,” said Ashneer Grover in a post on social media platform X.
Grover owned close to 4% stake in the Delhi-headquartered fintech and as a part of the settlement 1.4% was returned to the Resilient Growth Trust, which is a trust connected to BharatPe’s parent company, and the rest to the family trust, the source added.
Additionally, Grover will also transfer 2.6% stake to BharatPe co-founder Bhavik Koladiya, who had alleged that he had transferred shares worth Rs 88 lakh to Grover but did not receive any payment.
The legal battle between Grover and BharatPe stems to early 2022 when Grover went on voluntary leave after an audio clip of him abusing a bank employee went viral, which he claimed to be fake.
As Grover went on leave,the company announced an independent audit by Alvarez & Marsal, which opened a proverbial can of worms.
The audit found evidence of fraudulent transactions in recruitment and payments to non-existent vendors as well as irregularities in invoices submitted by Jain, who held the designation of ‘Head of Controls’ in BharatPe. She was subsequently sacked.
In March 2022, Grover resigned from the company, followed by BharatPe filing a criminal complaint against the couple on grounds of embezzlement, forgery, and criminal breach of trust, seeking Rs 88.6 crore in damages.
A separate civil lawsuit filed by BharatPe against Grover and his family further accused the couple of misappropriating funds to the tune of Rs 71.76 crore through sham transactions, destruction of evidence and personal enrichment through reimbursements.
In May 2023, BharatPe had also filed a complaint with the EOW against Grover and his family.