ashneer grover: Battle for Ashneer Grover’s BharatPe shares begins

Bengaluru: BharatPe is trying to claw again its cofounder Ashneer Grover’s restricted shares within the firm, a number of individuals conscious of the developments informed ET, signalling an escalation within the ongoing confrontation between the fintech agency and its former managing director.

Earlier on Wednesday, the Delhi-based firm stated Grover and his members of the family had engaged in “in depth misappropriation of funds” and “siphoned money away from the company’s accounts”.

In a press release, BharatPe stated it reserves the best to ‘take additional authorized motion towards ( Grover) and his household,” marking an aggressive comeback a day after Grover– who abruptly
resigned from the corporate and its board on midnight of March 1—had accused the agency’s buyers of getting “vilified” him.

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BharatPe accuses Ashneer Grover, household of ‘fraud’; learn the total textual content

“While the board has noted the termination of employment of Grover, due to his resignation without the adequate approvals of the company board, (it) allows BharatPe to trigger the Articles of Association,” stated one of many individuals cited above.

In response to the AOA– a authorized doc containing guidelines for the interior administration of a company–filed by BharatPe’s father or mother, Resilient Improvements, with the Registrar of Firms (RoC) in September 2021, if a founder terminates his employment with out the consent of the board, the corporate will purchase again the shares at a decrease truthful market worth.

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Grover at present holds roughly 8.5% stake in BharatPe. Of this 1.4% just isn’t vested, in line with the individuals quoted above.

“… if a founder terminates his employment for reasons other than death or permanent disability, unless such termination has the approval of the board and the investors representing investor majority threshold, then, subject to compliance with applicable law … the restricted shares held by such founder shall be bought back by the company at the lower of the FMV (fair market value) or the price paid by the relevant founder for acquisition of such restricted shares,” the corporate’s AoA reads.

These shares alternatively may also be transferred to an worker welfare belief at lower cost or on the value paid by the related founder.

The corporate defines restricted shares as 75% of the founder’s shares after BharatPe’s Collection C funding in 2019 and follow-on shares issued on the closing of Collection E funding.

As well as, Grover was additionally granted administration inventory choices amounting to 0.5% of the corporate created, estimated to be price Rs 100 crore.

In an interplay with ET, on March 1, Grover had stated that he would lose out administration inventory choices price Rs 100 crore, as a fallout of his spat with the corporate’s board.

Grover didn’t reply to ET’s queries in regards to the share clawback on Wednesday night.

Additionally Learn |
Don’t have anything to cover, open to creating my funds public: Ashneer Grover

BharatPe refutes fees

In a strongly worded launch on Wednesday, BharatPe clarified that Grover is not an worker, founder or a director of the corporate whereas stating that it “has taken strong objection to Grover spinning lies and hurling baseless allegations and threats.”

“The Grover household and relations engaged in in depth misappropriation of firm funds, together with, however not restricted to, creating pretend distributors by way of which they siphoned cash away from the corporate’s account and grossly abused firm expense accounts with the intention to enrich themselves and fund their lavish existence,” Bharat Pe’s assertion stated.

In response, Grover– who has been embroiled in a two-month lengthy showdown with the board and administration of the corporate that he cofounded– stated he isn’t “surprised” and that the assertion comes from a place of ‘personal hatred’.

“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. 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,” he informed ET.

He additionally demanded readability on which of the unbiased companies tasked with investigating allegations of economic irregularities within the firm was auditing “ 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 created. I wish the Company and the Board a speedy recovery,” Grover added.

The high-pitched alternate comes on the again of BharatPe’s board assembly on Tuesday night, when it mentioned findings of the PricewaterhouseCoopers (PwC) audit report, a number of individuals within the know, confirmed to ET.

“ The board members are obviously not okay with the allegations Grover has hurled at the company in public…. They will be looking to take appropriate steps now since the issue has gotten out of hand,” stated one individual conscious of the dialogue. “ There is enough evidence that money has been ‘siphoned off’ from the company which links him and his family members to the act,” stated a second supply.

ETtech Unique: BharatPe Co-Founder Ashneer Grover on how he was pushed to resign

In an unique interview with ETtech Editor Samidha Sharma, BharatPe Co-Founder Ashneer Grover talks in regards to the circumstances that led to his resignation from the corporate. Watch

Alleges witch hunt

In an interplay with ET on March 1, Grover alleged that the complete matter was a witch hunt by the board and administration of Bharat Pe to get him out of the corporate. “I have run processes, and this is not a process, it is a witch hunt. And now it is up to me that I’m not a part of this witch hunt any longer. That a governance review magically overnight becomes a ‘conflict of interest’ case,” he informed ET.

BharatPe, head of controls and Grover’s spouse, Madhuri Jain was terminated by the corporate on February 22, on grounds of ‘misappropriation of funds’. Jain had posted movies of events at BharatPe’s workplace on microblogging website Twitter final week, taking a dig at chief govt Suhail Sameer and group product head Bhavik Koladiya. In a collection of tweets, she additionally termed BharatPe’s all-male board as ‘chauvinistic’.

Grover’s resignation timing

Hours after Grover’s resignation letter was despatched to board members on the midnight of March1, BharatPe stated in a press release that it was pre-empting the probe findings which have been to be mentioned in a gathering on Tuesday.

“ 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,” stated BharatPe in its assertion on Wednesday.

In an interplay with ET, on March 1, Grover stated that
he has been getting ready his resignation letter for the previous three days. “ I was clear that I would send it on Monday night. The BharatPe board is pre-empting what I’m doing, not the other way around. The board agenda came in at 11:54 pm last night so what pre-empted the board to hold a meeting at such a short notice,” he queried.

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