Grover controversy: BharatPe says not fired any employee, audit is on

New Delhi, Jan 29 (IANS) Facing a controversy over its Co-founder and Managing Director Ashneer Grover, fintech platform BharatPe on Saturday said it has not terminated the services of any employee (including Grover) at this stage.

BharatPe, which is doing an independent audit of the company’s internal processes and systems after the controversy erupted over Grover allegedly using inappropriate language against Kotak Mahindra Bank’s staff, said that the reports suggesting any termination are baseless and untrue.

“The Board remains committed to an independent and thorough audit process. No action has been taken or will be taken till the audit has been completed,” the company said in a fresh statement.

In an earlier statement, BharatPe said that through its legal firm, Shardul Amarchand Mangaldas, it has appointed Alvarez and Marsal, a leading management consultant and risk advisory firm, to advise the Board on its recommendations.

The Board of BharatPe is “committed to the highest standard of corporate governance at the company and is doing an independent audit of the company’s internal processes and systems”.

Grover has taken voluntary leave till March-end while his wife, Madhuri Jain Grover who is the Head of Controls at the fintech company, has also gone on leave after the controversy.

In Grover’s absence, the fintech company has appointed Suhail Sameer as the CEO.

Grover’s decision to take a voluntary leave came after he allegedly used inappropriate language against Kotak Group staffers and an ongoing tussle with the bank.

He and his wife Madhuri Grover had sent a legal notice to Kotak Mahindra Bank’s Managing Director and Chief Executive Officer, Uday Kotak, and to some of his senior management, accusing the bank of failing to secure financing and allocation of shares in an IPO launched by beauty firm Nykaa.

The notice sought damages for the gains Grover and his wife would have made after subscribing to shares worth Rs 500 crore in the company, besides Rs 1 lakh towards the cost of the legal notice.

On its part, Kotak Mahindra Bank had said: “This notice was received by us and was replied to appropriately at the time, including placing on record our objections to inappropriate language used by Mr. Grover.

“Appropriate legal action is being pursued. We would like to confirm that there is no breach or violation by the Kotak Group in any manner whatsoever.”



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