New Delhi: In a recent update, Ashneer Grover, founder and MD of BharatPe, has written a letter to the board seeking removal of the company’s CEO Suhail Sameer.
Grover has accused Sameer of siding with the investors to oust him out of the fintech firm.
According to a report in Moneycontrol, this is the first time that the differences have grown big and are out in public though Grover and BharatPe have attempted to strike a conciliatory note recently.
Simultaneously there is also a growing scrutiny on the company’s governance and business practices which signifies that the board is not too keen to take back Ashneer Grover as sources have been saying in the last week.
BharatPe issued a statement to address the issue where it wrote: "We are deeply pained that the integrity of the BharatPe board or individual board members is being questioned time and again through misrepresented facts and baseless allegations. The Board in all its actions has followed due process in the best interest of the company".
"We would urge that the confidentiality and integrity of the Governance review and board meetings is maintained by all. We request everyone, including the media, to show restraint and allow the governance review to take place in a thorough manner. The Board is yet to receive any interim or final report of the review," the fintech firm added.
Suhail Sameer was hired by Grover in 2020 and was made the chief executive in August last year. Grover had assumed the role of managing director of BhararPe in the same time.
Grover took a leave of absence until March-end amid backlash regarding his abusive language to a Kotak employee, toxic culture at BharatPe, and brash behaviour. His wife Madhuri Jain Grover, who headed controls, also went on leave last week.
BharatPe’s board and external consultants are conducting a forensic probe into the company’s business practices, including accounting, approval processes, expenses, and hiring.
Mint in its report mentioned that a preliminary investigation by an external specialist has highlighted two instances of fraud at BharatPe recently. Madhuri Grover is linked to both the fraudulent schemes. Alvarez and Marsal, a risk advisory firm, submitted its report to the BharatPe board.
Moneycontrol in its report mentioned that Grover was calm in the beginning and later became combative; and called Sameer a puppet of investors. He alleged that a conspiracy has been hatched behind him.
“In the last round, Sameer sold Rs 11 crore worth of ESOPs (Employee Stock Option Plans). I have created value for him, real value not paper value. After having done everything and giving someone full degree of freedom to operate, if you operate in a manner and side with the investors when I need you the most, then you don’t enjoy my confidence. Why should the puppet of the investors be my nominee on the board?” Grover told Moneycontrol.