BharatPe receives notice from Ministry of Corporate Affairs following Paytm Fiasco!

BharatPe, a prominent fintech unicorn, has recently been served a notice by the Ministry of Corporate Affairs (MCA) under Section 206 of the Companies Act. This notice requests information regarding legal proceedings initiated by the company against its founder, Ashneer Grover.

The MCA's inquiry stems from alleged corporate governance lapses at BharatPe in 2022, following a public dispute between its Board and Ashneer Grover. Grover resigned as managing director amidst the controversy, and the company initiated a forensic audit into its financial practices during his tenure.

The notice seeks evidence of civil and criminal complaints filed against Grover by BharatPe, indicating the ongoing investigation by the ministry into the matter. BharatPe has stated its commitment to cooperating fully with the authorities in providing the requested information.

The controversy surrounding BharatPe dates back to early 2022 when Grover was accused of misconduct, including using inappropriate language and making threats. Subsequently, the company filed a civil lawsuit against Grover, alleging financial improprieties and misappropriation of company funds for personal use.

In its lawsuit, BharatPe also claimed that Grover had made minimal contributions to the company's technology or concept, highlighting his limited initial investment and shareholding.

The situation remains fluid, and further updates are anticipated as the investigation progresses.