Ashneer Grover And Family Siphoned Off Money To Lead Lavish Lifestyle, Says BharatPe

The fintech company on Wednesday removed co-founder Ashneer Grover from all positions

Ashneer Grover resigned from the post of managing director of BharatPe on Tuesday. Image: File photo

New Delhi: Fintech firm BharatPe on Wednesday accused Ashneer Grover and his family of extensive misappropriation of company funds.

In an official statement, BharatPe said, “Ashneer Grover, his family, and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company's account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles.”

The company on Wednesday removed co-founder Ashneer Grover from all positions.

“The board will not allow the deplorable conduct of the Grover family to tarnish BharatPe’s reputation or that of its hard-working employees and world-class technology. As a result of his misdeeds, Grover is no longer an employee, a founder, or a director of the company,” BharatePe said, according to a report in the PTI.

In his rebuttal, Grover hits back by saying, "I am appalled at the personal nature of the company’s statement, but not surprised. It comes from a position of personal hatred and low thinking. I think the board needs to be reminded of $1 million of secondary shares investors bought from me in Series C, $2.5 million in Series D, and $8.5 million in Series E."

Grover, who resigned from the post of managing director on Tuesday, said, "I would also want to learn who among Amarchand, PWC, and A&M has started doing audit on ‘lavishness’ of one’s lifestyle? The only thing lavish about me is my dreams and ability to achieve them against all odds through hard work and enterprise. I hope the board can get back to working soon, I as a shareholder am worried about the value created. I wish the company and the board a speedy recovery.”

BharatPe on Tuesday indicated that the board reserves the right to take action against Grover based on the findings of audit reports.

Responding to Grover’s resignation from the company’s board, BharatPe said, “Ashneer Grover resigned as MD and board director of BharatPe minutes after receiving the agenda for 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.”

Last month, BharatPe said that it had hired Alvarez to conduct a governance review of the firm, and PwC was also roped in to conduct an audit.

Grover had filed an arbitration plea with the Singapore International Arbitration Centre (SIAC) claiming the fintech firm’s probe against him was illegal. However, he failed to secure an interim relief from the SIAC which has allowed an investigation against him on alleged financial irregularities and governance lapses at the company.

Grover resigned after nearly two months of high drama where he locked horns with other board members and key investors.

Last week, the company terminated the services of Grover’s wife, Madhuri Jain Grover, who was heading the controls at BharatPe, as the investigation found misappropriation of funds during her tenure in the company.