Increasing the stakes,fintech unicorn BharatPe has filed an arbitration for clawing back it’s former MD and co-founder Ashneer Grover’s restricted shareholding and founder title, sources said. According to people with direct knowledge of the situation, the arbitration was filed in accordance with the regulations of the Singapore International Arbitration Centre (SIAC).Grover might forfeit his vested shares and founder status if relief is granted.Grover owns around 8.5% of the business and has been charged by BharatPe with fraud and embezzlement of funds, 1.4% of this is not yet vested. The corporation did not immediately make any reaction.The action follows a detailed corporate governance review by the company’s board into allegations of lapses and misdoings during the tenure of Grover as managing director. Without going into further detail, sources claimed that Grover’s refusal to abide by the shareholders’ agreement was what sparked the arbitration proceedings.
Video Courtesy: CNBC-TV18Following a civil lawsuit before the Delhi High Court and a criminal complaint to the Economic Offences Wing, this is BharatPe’s third legal action against Grover. In the 2,800-page lawsuit, BharatPe claimed that Grover, his wife Madhuri Jain, and other family members produced fake invoices, hired fictitious vendors to provide services to the company, and overcharged the firm for recruitment. It is seeking up to Rs. 88.67 crore in damages. The corporate governance review by Alvarez and Marsal, Shardul Amarchand Mangaldas and PwC led to the ouster of Jain, and Grover resigning from the company and its board in March.
According to sources, the business has now started arbitration proceedings after previously sending a legal notice for clawback. Unvested shares may be clawed back in accordance with the shareholder’s agreement. Grover owns about 8.5% of BharatPe, of which 1.4% was released and not yet vested on the day of his retirement.In February, Grover’s plea at SIAC on the investigation against him was rejected on all five grounds.
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