Ashneer Grover Withdraws Petition Against BharatPe Over MD Reinstatement Demand, Ongoing Dispute Since 2022.
Ashneer Grover, Co-founder of BharatPe, Withdraws Petition from NCLT
Ashneer Grover, co-founder of BharatPe, has officially withdrawn his petition from the National Company Law Tribunal (NCLT), where he had accused the fintech company’s board of oppressive behavior and mismanagement. This decision comes after a settlement was reached between Grover and the company on September 30, 2024. Grover’s legal team presented a copy of the settlement agreement before the Delhi bench of NCLT.
Settlement Reached After Lengthy Legal Battle
In addition to withdrawing his petition from NCLT, Grover also withdrew a separate plea from the National Company Law Appellate Tribunal (NCLAT) on October 17, 2024, which had requested an early hearing of the case pending in NCLT.
Grover’s Three Key Demands from NCLT
- Reinstatement as Managing Director (MD) of BharatPe and changes to the company’s board.
- A request for the Ministry of Corporate Affairs to initiate an inspection and audit of BharatPe.
- A demand to reverse the termination of his wife, Madhuri Jain, from the company’s board.
Ashneer Grover to Hold No Shareholding in BharatPe
As per the settlement, Ashneer Grover will no longer hold any role or shareholding in BharatPe. Grover, who was removed from his position as Managing Director in March 2022, had been embroiled in a legal dispute with the company since then.
According to the settlement terms, some of Grover’s shares will be transferred to the Resilient Growth Trust for the benefit of the company, while his remaining shares will be managed by his family trust.
The 2022 Dispute: A Backstory
Ashneer Grover’s dispute with BharatPe dates back to 2022. The conflict was fueled by a leaked audio clip in which Grover was heard using abusive language towards a Kotak Mahindra Bank employee. In addition to this, he was accused of violating company policies.
Following complaints against Ashneer and his wife, Madhuri Jain Grover, BharatPe launched an internal investigation. The investigation revealed that Madhuri Jain was involved in financial misconduct, using company funds for personal expenses such as beauty treatments, electronic gadgets, and family vacations in the U.S. and Dubai.
She also allegedly made payments to personal staff using company accounts and submitted fake receipts to benefit known individuals. After these revelations, Madhuri Jain was dismissed from the company. Ashneer Grover then appealed against BharatPe’s decisions in the Singapore International Arbitration Centre (SIAC), but he faced defeat there as well, leading to his eventual resignation from the company in March 2022.