BharatPe to 'claw back' Ashneer's restricted shares, blocks vendors
Leading fintech platform BharatPe on Tuesday said it has initiated necessary action against the company's former founder Ashneer Grover to "claw back his restricted shares as per the shareholders' agreement" and will take all steps to enforce its right under the law.
 
As part of its corporate governance review of the company after the financial irregularities were unearthed during Ashneer and his wife Madhuri Jain Grover's time, the company found many vendors were involved in malpractices, such as incorrect or inflated invoices, who have been blocked for further business with the company.
 
"These vendors were also identified during the GST Enquiry. The company has already issued legal notices to these vendors to recover the amount and will be filing civil/criminal cases against them in the coming days," said BharatPe.
 
The company has terminated the services of several employees in departments who were directly involved with these blocked vendors.
 
"If required, the company will be filing criminal cases against some of these employees for the misconduct and act of cheating committed by them against the company," it added,
 
In January, the board of BharatPe appointed Alvarez & Marsal (A&M), a global professional services firm and Shardul Amarchand Mangaldas & Co. (SAM) to help the board and management with its governance review and PwC to determine wilful misconduct and gross negligence by a former founder.
 
BharatPe said that a new code of conduct will be applicable to senior management and employees and has now been implemented.
 
"A new and comprehensive Vendor Procurement Policy has also been developed to ensure that a robust mechanism is in place for on-boarding and engaging with vendors and mitigate any risk of employees indulging in suspicious transactions to enrich themselves," said the company.
 
A full-time CHRO and an interim CFO have joined the company, said the company, and it is in the process of finalising the candidate for the role of CFO.
 
Mazars India, a global audit firm, has been appointed by the company as an internal auditor.
 
Grover, along with his wife Madhuri Jain Grover, has been stripped of all company titles over alleged "extensive misappropriation of company funds" and using "company expense accounts" to "enrich themselves and fund their lavish lifestyles".
 
Ashneer Grover, co-founder and former Managing Director of fintech platform BharatPe, recently said that he is planning to start his own venture without seeking funds from the investors.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
Comments
Housing Demand To Stay Firm amidst Rising Prices, Interest Rates: Report
Moneylife Digital Team 10 May 2022
The momentum in housing demand across India's top-6 cities is expected to continue this fiscal and grow 5%-10% despite rising property prices, interest rates and a high-base effect, says a research note.
 
Aniket Dani,...
After a Two-year Rally, Steel Prices Set To Bend on Weak Season: CRISIL
Moneylife Digital Team 09 May 2022
Domestic steel prices are showing signs of fatigue after a relentless rally over the past two years following supply disruptions, de-carbonisation measures globally, especially in China, and geopolitical risks stemming from the...
L&T to own 68.73% in combined entity after Mindtree, LTI merger
IANS 07 May 2022
Larsen & Toubro Limited as the promoter will own 68.73 per cent stake in the combined entity created by the merger of Mindtree and L&T Infotech (LTI).
 
Mindtree, a leading digital transformation partner with market cap of...
Subhiksha Founder R Subramanian Tenders Public Apology to Wipro's Azim Premji & Others; Withdraws All Cases
Moneylife Digital Team 05 May 2022
Newspaper readers in the mainline media were surprised at a huge, quarter page advertisement in big, double spaced type offering an unconditional and unreserved apology to Azim Premji of Wipro, Yasmee Azim Premji and others in the...
Free Helpline
Legal Credit
Feedback