BharatPe Settles Legal Issues with Co-Founder Ashneer Grover

Fintech firm BharatPe has reached a settlement to resolve a protracted dispute with its former co-founder Ashneer Grover, effectively ending a lengthy legal battle and public disagreements. As part of the settlement, Grover will have no association with BharatPe and will not hold any shares in the company.

According to BharatPe’s statement, “Certain shares of Mr. Grover shall be transferred to the Resilient Growth Trust for the benefit of the Company, while his remaining shares will be managed by his family trust.” Both parties have agreed not to pursue any legal claims against each other.

This settlement follows the recent arrest of a close family member of Grover and his wife, Madhuri Grover, by the Economic Offences Wing (EOW) of Delhi Police in connection with allegations of misappropriation of the fintech unicorn's funds. It remains uncertain whether this settlement will impact the EOW's ongoing investigation.

“I have reached a decisive settlement with BharatPe. I repose my faith in the management and board, who are doing great work in taking BharatPe forward in the right direction. I continue to remain aligned with the company’s growth and success-” Ashneer Grover on X.

The conflict between the two became public last January when an audio clip allegedly featuring Ashneer using expletives against a Kotak Bank employee surfaced. While he claimed the clip was fake, the bank announced its intention to take legal action. Shortly after, Ashneer took a voluntary leave of absence until the end of March. This decision followed the revelation of an email exchange between Ashneer and Sequoia, BharatPe’s largest shareholder, which highlighted the growing tensions between the two parties. Additionally, Ashneer’s wife, Madhuri Grover Jain, was also placed on leave.

Following these events, BharatPe engaged independent auditors to examine the company's practices during Grover's tenure. A preliminary report by A&M in February accused Madhuri of financial fraud, leading to her termination from BharatPe later that month on charges of fund misappropriation.

In December 2022, BharatPe filed a criminal complaint against Grover and his family, alleging fraud and seeking damages exceeding ₹88.67 crore. Nearly five months after the complaint was filed, the Delhi Police's Economic Offences Wing (EOW) registered a First Information Report (FIR) against Grover, his wife Madhuri Jain, and other family members.

Recently, the EOW arrested Deepak Gupta, a relative of Grover, in connection with the alleged misappropriation of the company’s funds.