After fighting for years, fin-tech platform BharatPe has reached a settlement with its cofounder and former managing director Ashneer Grover. Following allegations of misappropriation of funds, BharatPe had initiated civil and criminal action against Mr Grover and his family members. In March 2024, the Singapore International Arbitration Centre
(SIAC) dismissed Mr Grover's challenge to its jurisdiction on its power to decide on the clawback of his shares in the fintech unicorn BharatPe he co-founded.
In a
statement shared on X, BharatPe says, "(It) has arrived at a definitive agreement with its former cofounder Mr Grover. As a party of the settlement, Mr Grover will not be associated with BharatPe in any capacity (and) not be a part of the shareholding of the company. Certain shares of Mr Grover shall be transferred to the Resilient Growth Trust for the benefit of the company and his remaining shares will be managed by his family trust. Both parties have decided not to pursue the cases filed."
Confirming the deal,
Mr Grover in a post on X says, "I have reached a decisive settlement with BharatPe. I repose my faith in the management and board, who are doing great work in taking BharatPe forward in the right direction. I continue to remain aligned with the company's growth and success...Both parties have decided not to pursue cases filed. I hope BharatPe continues to grow and succeed for the benefit of all its stakeholders....Peace!"
According to
a report from Entrackr, almost five months after BharatPe submitted a criminal complaint, the economic offences wing (EOW) of Delhi police filed a first information report (FIR) against Mr Grover, his wife Madhuri Jain, and other family members.
"Last week, EOW of the Delhi police arrested Deepak Gupta, a family member of Mr Grover in connection with the misappropriation of the company's funds," the report says.
Following Mr Grover and his wife Madhuri Jain Grover's resignations, a spokesperson of BharatPe told IANS on 1 March 2023 that Mr Grover resigned as MD and board director of BharatPe "minutes after receiving the agenda for (the) upcoming Board meeting that included submission of the PwC report regarding his conduct and considering actions based on it."
"The Board reserves the right to take action based on the report's findings," the spokesperson added.
Mr Grover's resignation came as top investors in the fintech platform declined to buy his 8.5% stake in the company for Rs4,000 crore, as he had sought.
In the letter at that time, Mr Grover said that the board and its probe would not find a single act of impropriety against him. He also took a dig at the founder-investor relationship in India, calling it one of 'slavery'.
"You treat us founders as slaves - pushing us to build multi-billion-dollar businesses and cutting us down at will. The investor-founder relation in India is one of master-slave. I am the rebel slave who must be hung by the tree so none of the other slaves can dare to be like me ever again," he wrote.
BharatPe approached the Delhi High Court (HC) months after Mr Grover and his wife were expelled from the company over allegations of misappropriation of funds.
In its suit, BharatPe has claimed damages worth Rs88.67 crore from the company founder, Ms Jain and his brother under various heads, including a claim for payment made against the invoices of non-existent vendors, a claim for penalty paid to goods and services tax (GST) authorities, payments made to vendors purportedly providing recruitment services, payments made to a furnishings company; payments for personal expenditures and damages for loss of reputation to the company caused by tweets and other statements made by them.
Meanwhile, BharatPe also asked the Grovers to repay company funds to the tune of Rs88.6 crore with 18% interest which they swindled via various modes like creating fictitious bills, inflated vendor payments and personal use, among others.
In January and March 2023, BharatPe cofounders Bhavik Koladiya and Shahvat Nakrani also filed complaints against Mr Grover concerning a share dispute.
During 2022, BharatPe saw several high-profile exits, including founding member Satyam Nathani, Mr Grover (who triggered a major controversy at the platform); chief revenue officer Nishit Sharma; and head of institutional debt partnerships Chandrima Dhar, among others.
