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By Salman SH
BharatPe co-founder and managing director Ashneer Grover resigned minutes after receiving an upcoming board meeting agenda, which included consideration of action against him based on an investigation report into allegations of financial irregularities submitted by advisory firm PwC.
The development brings to an end a series of controversies that started emanating in the public domain around two months back when an audio clip surfaced where he was allegedly heard hurling abuses at an employee of Kotak Wealth Management over the bank’s inability to secure financing for the IPO of Nykaa.
In his letter to the board, Grover said that he is quitting as MD “effective immediately” due to “baseless and targetted attacks” against him and his family. He also took a dig at BharatPe investors, accusing them of using the board investigation as a “charade” to defame him.
“It is sad that you have even lost touch with the founder…For you, the founder of this company has been reduced to a button to be pressed when needed. I cease to be a human for you. Today, you have chosen to believe gossip and rumours about me instead of having a frank conversation,” he added.
BharatPe confirmed Grover’s departure from the company in an official statement. “Ashneer Grover resigned as managing director 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,” the statement said.
The letter to the board came just a day after Grover’s emergency arbitration plea before the Singapore International Arbitration (SIAC) was dismissed. In his plea, Grover had sought quashing of the BharatPe board’s investigation into the alleged financial fraud and mishandling of company funds.
The SIAC plea was largely seen as Grover’s attempt to seek indemnity for many future liabilities while selling his stake back to the company.
The emergency arbitrator (EA) of the special arbitration court, however, rejected all five grounds of his appeal and declined to provide any relief. Grover is now expected to move the Delhi High Court bench.
Grover was represented by Karanjawala & Co, while BharatPe was represented by senior counsel Abhishek Singhvi.
In his pleas before the SIAC, Grover had said the “review committee” formed by the BharatPe board earlier this month to look into the allegations of financial fraud was violative of the terms approved under the shareholder’s agreement (SHA).
The plea also quoted various clauses under the SHA and the articles of association (AoA) between Grover and the company as the primary basis to strike down the independent committee appointed by the board. In addition, it sought an order directing the BharatPe board “not to rely on the reports delivered by the Review Committee in its current form and constitution…”.
Grover had also sought SIAC’s intervention to keep in abeyance the appointment of Suhail Sameer as director of the company, pending the arbitration.
A preliminary report of the investigation, prepared by Alvarez and Marsal and PwC, has reportedly indicted Grover and his wife Madhuri Jain (controller of finance) of committing financial fraud.
The report has outlined two instances of financial transactions approved by Jain using invoices that were made to “non-existent” vendors.
Prior to the investigation, Grover had gone on a voluntary leave of absence from BharatPe till March end.
from Banking & Finance – The Financial Express https://ift.tt/P698vec
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