BharatPe has commissioned an independent audit of its processes
Amid growing concerns over governance issues, fintech firm BharatPe announced on Saturday that an independent audit of its internal process and systems is underway.
The development comes just days after founder Ashneer Grover took a voluntary leave of absence until the end of March. Mr Grover had made the decision to go on leave on December 19 after an audio clip revealed a massive fight between him and Kotak Mahindra Bank.
Meanwhile, Mr Grover’s wife Madhuri Jain Grover – who also works for the company – also went on leave, agencies reported.
According to sources, Madhuri – who is the head of controls – has gone on leave, and with the company conducting an independent audit, there may be governance-related issues at BharatPe that could now come to the fore, according to agency reports. BharatPe did not comment on Madhuri’s departure.
“BharatPe’s board of directors is committed to the highest standard of corporate governance at the company and conducts an independent audit of the company’s internal processes and systems,” the company said in a statement.
BharatPe, through his law firm, Shardul Amarchand Mangaldas, has appointed Alvarez and Marsal, a leading management consultant and risk advisory firm, to advise the board on its recommendations, the statement said.
“The board strongly believes in protecting the interests of all stakeholders, including customers, employees and partners,” it added, while asking the media to avoid speculation until the audit findings are completed.
According to Reuters, the audit will assess whether BharatPe’s senior executives are making appropriate internal disclosures about personal investments and checking for conflict, leading to a new code of conduct.
BharatPe is under intense scrutiny from investors and media after co-founder Ashneer Grover sued for damages from Uday Kotak, head of Kotak Mahindra Bank, alleging that the bank had refused funding for a personal investment, Reuters reported.
Kotak Mahindra Bank, for its part, has alleged that Mr Grover has used “dirty” and threatening language towards its employees and reserves the right to take appropriate legal action against him, according to a legal document viewed by Reuters.
