Fintech platform BharatPe on Wednesday revealed for the first time that Ashneer Grover, his wife Madhuri Jain, and their relatives were engaged in extensive misappropriation of company funds and grossly abused company money to fund their lavish lifestyles.
In a statement, BharatPe said it reserves all rights to take further legal action against him and his family.
"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 expense account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles," BharatPe elaborated.
The company said that 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, (Ashneer) Grover is no longer an employee, a founder, or a director of the company," the company announced.
Ashneer's resignation and its timing
Ashneer had sent an emotionally-charged resignation letter ahead of the crucial BharatPe board meeting as an independent PwC 'governance review' found him guilty of financial irregularities worth several crores along with his wife Madhuri Jain Grover.
The Board was set to grill Ashneer over the PWC report regarding his conduct and take action based on it, which was to ultimately sack him.
Sensing what was coming his way, Ashneer decided to shoot off an emotionally-charged and lengthy resignation to the Board, in a bid to salvage his image.
BharatPe 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.
"Minutes after Ashneer Grover received notice that some of the results of the inquiry would be presented to the Board, he quickly shirked responsibility by sending an email to the Board submitting his resignation and fabricating another false narrative of the events to the public,a said the company.
The company said it has taken strong objection to Grover spinning lies and hurling baseless allegations and threats.
The resignation came as top investors in the fintech platform declined to buy his 8.5 per cent stake in the company for Rs 4,000 crore as he had sought. Ashneer also lost an arbitration in Singapore he filed against the fintech platform for launching a probe against him.
According to sources, Grover's valuation does not hold ground as the company is not valued at $6 billion as being projected by him.
At a $2.85 billion valuation and at the current dollar-rupee exchange rate, his stake would be around Rs 1,824 crore.
Read full statement issued by BharatPe below:
BharatPe is fully committed to its employees and customers and looks forward to its continued success as a Fintech leader in India.
In order to uphold the highest governance standards, and in light of complaints received, the Board of BharatPe directed a thorough review of the company's internal controls. This extensive review is being led by well-respected and independent external advisors.
Minutes after Mr. Ashneer Grover received notice that some of the results of the inquiry would be presented to the Board, he quickly shirked responsibility by sending an email to the Board submitting his resignation and fabricating another false narrative of the events to the public. The company has taken strong objection to Mr. Grover spinning lies and hurling baseless allegations and threats. 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.
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.
The Board remains highly focused on supporting the growth and continued success of the company. 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. The success of BharatPe is a result of the collective effort of a large team of dedicated and talented professionals, and not any one individual. We are confident that the company is marking the beginning of a new chapter in its success–one grounded in trust and integrity–and we are excited to embark upon this next leg of our journey.
