The board of directors of BharatPe have decided to fire co-founder and managing director Ashneer Grover as the latest reports suggest that Mr Grover has engaged in financial fraud.
The decision to terminate Mr Grover is solely due to evidence found from internal investigations. The company has also reported that they have taken the services of a law firm and risk consultants and that the final decision will only be relieved in 2 months.
In the following week, it has been reported that the company had also fired 15 employees, one among who is Madhuri Jain, the wife of Mr Grover. It was previously stated that the company was looking to replace Mrs Jain with a qualified CFO but, Mr Grover had turned down that decision.
Later, the company sent out a statement denying the firing of Mrs Jain and other employees. The chief executive of BharatPe had stated that the company is committed to ethical understanding, research and investigation of its systems. They are presently engaged in an audit process.
BharatPe, with the help of its legal firm, has taken the services of Alvarez and Marsal, a well-known consultancy and risk advisory firm. The board reported that its main priority is to look after and protect the interests of the stakeholders, customers and employees.
The controversy over Grover’s departure from the company sources to the recording that was found during an investigation in which Mr Grover is allegedly heard threatening a Kotak Wealth Management employee on failing to secure a share deal of Nykka.
The board stated that it is not about the call recording which Grover says is fake but it is a case of financial fraud in which Grover, Mrs Jain and five other members who are his relatives, are being investigated.
There are also interrogations being held about Mr Grover’s financial expenses in the past year. It is reported that he has bought two houses of 20-30 crores each. The board is sceptical about how Grover was able to fund such expenses.
The board has found premediated evidence and is on the tail of finding conclusive evidence to cap off this controversy and investigation. Only then can the company pursue further legal action.
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