On Wednesday, BharatPe revealed that Ashneer Grover and his family grossly misused company money.
Ashneer Gover, and his wife Madhuri Jain and relatives, extensively misused BharatPe’s money to fund their lavish lifestyle.
Furthermore, BharatPe reserves all right to take further legal action against Ashneer and his family.
Ashneer Grover grossly misused BharatPe’s money
BharatPe elaborated the situation, “The Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company’s expense account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyle.”
Furthermore, the BharatPe board said they will not allow the “deplorable conduct of the Grover family to tarnish BharatPe’s reputation or that of its hard-working employees and world-class technology.”
However, Ashneer had already sent an emotionally-charged resignation letter ahead of the crucial BharatPe board meeting.
Nevertheless, an independent PwC ‘governance review’ found Ashneer and his wife guilty of financial irregularities worth several crores.
BharatPe grills Ashneer over PwC report
As a result of Ashneer Grover’s misuse of BharatPe’s money, the company announced, “As a result of his misdeeds, (Ashneer) Grover is no longer an employee, a founder, or a director of the company.”
Furthermore, the company board is ready to grill Ashneer over the PwC report and take action over his misconduct.
Nevertheless, in hopes of salvaging his image, Ashneer sent an emotionally-charged and lengthy resignation to the board.
Additionally, the company said, “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.”
BharatPe and Ashneer Grover lock horns
As of August 2021, Resilient Innovations that runs BharatPe values at $2.8 billion.
However, according to sources, Ashneer Grover projected the company value at US$6 billion, resulting in his valuation not holding ground.
In response to BharatPe’s statement, Ashneer issued a statement saying he is “appalled at the personal nature of the company’s statement, but not surprised.”
“It comes from a position of personal hatred and low thinking.” “I think the board needs to be reminded of $1mn of secondary shares investors bought from me in Series-C, $2. 5mn in series-D and $8.5mn in series-E.”
“I would also want to learn who among Amarchand, PWC and A&M has started doing audit on ‘lavishness’ of one’s lifestyle?”
Nevertheless, given the current dollar-rupee exchange rate at $2.85 billion, Ashneer’s stake is around Rs 1,824 crore.
Furthermore, Ashneer lost 1.4% equity shares worth Rs 300 crore.
BharatPe says, “in order to uphold the highest governance standards, and in light of complaints received, the board of BharatPe directed a thorough review of the company’s internal controls.”
“This extensive review is being led by well-respected and independent external adviser.”
As external advisors assess the situation at BharatPe, Ashneer Grover and his wife grossly misuse company money.