Since the fight between Ashneer Grover and BharatPe’s board began two months back, the company for the first officially accused the embattled founder's family and relative of misappropriating funds on Wednesday.
“The Grover 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,” said BharatPe.
“The company reserves all rights to take further legal action against him and his family. 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, Mr. Grover is no longer an employee, a founder, or a director of the company,” it added.
The company also said that the Board is taking all necessary steps to further strengthen the company’s corporate governance, including the appointment of an audit committee, an internal auditor, and the implementation of other key internal controls.
"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," said Ashneer Grover in response to BhatatPe allegations today.
"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 destruction. I wish the Company and the Board a speedy recovery," he added.
Business Standard reported earlier that the fintech unicorn is looking to hire a chief financial officer, an internal audit head and strengthen its procurement processes in the next one month, according to sources close to developments.
Grover resigned as managing director (MD) and company’s board director on Monday. The company later said Grover’s resignation letter was received within minutes after a board meeting was called to deliberate on an audit report by accounting firm PwC.
Although the board meeting happened on Tuesday night, the company has not disclosed what decisions were taken – and whether an FIR will be filed based on the audit report.
"The Board of BharatPe noted the termination of employment of Ashneer Grover as a consequence of his resignation from the post of MD as well as Director. However, as he resigned without the approval of the board and majority investors, consequences under the Shareholder agreement have now been triggered," said a source close to the developments.
Grover currently has around 9 per cent shareholding in the company. The board meeting, which started late Tuesday evening (as some directors are in the US), was expected to touch upon the possibility of clawing back his shares in accordance with the articles of association and shareholding agreement.
A source close to the development said Grover currently has 9.5 per cent shareholding in the company. However, the board meeting, which started late Tuesday evening (as some directors are in the US), was expected to touch upon the possibility of clawing back his shares in accordance with the articles of association and shareholding agreement.
“They can’t do anything with the shares since the shareholder agreement (SHA) does not allow them at all (to claw back shares),” Grover earlier told Business Standard earlier this week.
Grover’s resignation came days after a plea filed by him with the Singapore International Arbitration Centre was dismissed. In his petition, the BharatPe co-founder had sought indemnity from the audit report and asked to render it invalid as it did not comply with the SHA.
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