To raise the bar, fintech unicorn BharatPe has filed an arbitration to reclaim former MD (Managing Director) and co-founder Ashneer Grover’s limited shareholding and founder title, sources said.
The arbitration was filed on Thursday under the rules of the Singapore International Arbitration Center (SIAC), sources with direct knowledge of the case said.
If an exemption is granted, Ashneer Grover may lose his unvested shares and the right to use the founder title.
Ashneer Grover, who has accused BharatPe of cheating and embezzling funds, owns about 8.5 percent of the company. Of this, 1.4 percent is not unconditional.
The company did not immediately comment.
The action follows a detailed corporate governance review by the company’s board of directors into allegations of forgery and wrongdoing during Ashneer Grover’s tenure as chief executive.
The arbitration proceeded after Ashneer Grover refused to abide by the shareholder agreement, sources said without further comment.
This is BharatPe’s third lawsuit against Ashneer Grover following a civil suit in the Delhi High Court and a criminal complaint in the Economic Crimes Department.
BharatPe, in the 2,800-page lawsuit, alleged that Ashneer Grover, his wife Madhuri Jain and other relatives had made false bills, employed fictitious vendors to provide services to the company and overcharged the company for recruitment. It is seeking up to Rs 88.67 crore in damages.
The corporate governance review by Alvarez and Marsal, Shardul Amarchand Mangaldas and PwC led to the ousting of Madhuri Jain, and the resignation of Ashneer Grover from the company and board in March.
Sources said the company had previously sent a legal notice for chargeback and has now entered arbitration proceedings. According to the shareholder agreement, a reclaim of non-vested shares can be triggered.
Ashneer Grover holds an approximately 8.5 percent stake in BharatPe, of which 1.4 percent was unvested and released at the date of his resignation.
In February, Ashneer Grover’s plea to SIAC (Singapore International Arbitration Centre) about the investigation against him was rejected on all five grounds.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)
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