Ashneer Grover has lost the arbitration against BharatPe’s board review
New Delhi:
BharatPe co-founder and CEO Ashneer Grover has lost an arbitration he filed against the company’s investigation against him, where an emergency arbitrator ruled there was no reason to stop the board’s review at the fintech company, according to sources.
Mr Grover, who went on two-month leave of absence last month following allegations of abusive language against Kotak Mahindra Bank staff and fraudulent practices, had filed an arbitration request with the Singapore International Arbitration Center (SIAC) calling for the company’s investigation against him. claimed. was illegal.
However, the Emergency Arbitrator (EA) dismissed all five grounds of its appeal and dismissed a single injunction, according to sources with direct knowledge of the development.
Although BharatPe declined to comment as the case was under court, Grover was not immediately available for comment.
Mr. Grover argued before the arbitrator that the preliminary investigation was null and void because it violated the shareholders’ agreement and the articles of association and the company is not authorized to conduct such an investigation.
He had labeled all appointments to the independent audit of the company’s internal processes and systems as legally bad.
He alleged that the members of the committee that reviews governance processes, such as the company’s CEO Suhail Sameer and the company’s general counsel, Sumeet Singh, appeared to be biased.
Also, “Suhail Sameer’s appointment as director will be suspended and he will be prevented from serving in any position as director of the company,” Mr Grover had said in the plea also requesting that no action be taken against him.
Sources said EA rejected all five grounds for exemption.
On the bias claim, the EA said Grover’s claim didn’t seem reliable or credible because until a week ago, both Mr Suhail and Mr Sumeet were among the best employees and everything was great about them.
Also, everything the company has done is in compliance with the law and governance standards, so there’s no need to change anything, the EA noted, dismissing all claims outright and offering Grover no relief.
Mr Grover may challenge the arbitrator’s order before the Delhi High Court, sources said.
In his plea, Mr Grover alleged that despite numerous objections/objections, BharatPe deliberately kept the review and assessment by the review committee opaque and did not give him a chance to present his case.
The first arbitration hearing was held on Feb. 20, and the EA approved the injunction a few days ago, the sources said.
Mr Grover was represented by Karanjawala & Co while BharatPe was represented by senior counsel Abhishek Singhvi.
In statements this month, Mr Grover called for the removal of Mr Sameer. But removing the CEO as director requires the consent of BharatPe co-founder Shashvat Nakrani.
Further, Mr Grover had requested the dissolution of the current review panel and the establishment of a new ‘lawful commission’ to review and conduct a comprehensive review of BharatPe’s affairs.
A preliminary internal investigation has established the size of the financial misconduct at more than Rs 50 crore. BharatPe has engaged a law firm and a risk advisor to conduct a more detailed investigation following allegations of financial irregularities, sources said.
PricewaterhouseCoopers (PwC) is conducting the audit together with Alvarez & Marsal (A&M). That review revealed alleged misuse of funds by Madhuri Jain, head of controls at BharatPe and wife of Mr Grover.
Ms. Jain, who has led procurement, finance and human resources from the company’s inception, was fired following the assessment.
Developments surrounding the controversial founder have snowballed at BharatPe since the emergence of an audio clip in which Mr Grover allegedly threatened a Kotak Wealth Management employee for failing to secure funding for Nykaa’s first share sale. On January 19, Mr. Grover was sent on voluntary leave of two months until the end of March.
