Sources told Inc42 that BharatPe has moved SIAC to stop Grover from using the title of company’s cofounder
Grover’s usage of the cofounder title after the expiration of the contract is ‘unethical’: Sources
BharatPe has also filed a civil suit in the Delhi High Court against Grover and family, seeking to recover INR 88.73 Cr, and a criminal complaint with the EoW
Mounting another offensive, fintech giant BharatPe has now filed an arbitration suit to claw back former managing director Ashneer Grover’s 1.4% unvested equity.
Sources told Inc42 that BharatPe has moved the Singapore International Arbitration Centre (SIAC) to recover Grover’s restricted shareholding and stop him from using the title of company’s cofounder.
The usage of the cofounder title was subject to multiple clauses under the contract Grover signed with the company, the sources added.
The ex-MD’s usage of the cofounder title after the expiration of the contract is ‘unethical’, they said.
Grover holds close to 8.5% stake in the company, of which 1.4% is unvested.
This is the third major attack launched by BharatPe against its former managing director. It has also filed a civil suit in the Delhi High Court against him and his family members, seeking to recover INR 88.73 Cr, and a criminal complaint with the Economic Offences Wing (EoW).
Grover and BharatPe’s former head of controls and his wife Madhuri Jain Grover were subject of a corporate governance review that alleged lapses and misappropriation of funds by the duo.
In the 2,800-page lawsuit filed against the Grovers and his family in the Delhi High Court, BharatPe has made a host of allegations including misappropriation of funds, invoicing fake vendors, GST frauds and seeking reimbursements for personal items.
The drama traces its roots back to the public fallout earlier this year when Grover and his wife were removed from all key positions at the company. This came after an internal review of the company conducted by Alvarez and Marsal, Shardul Amarchand Mangaldas and PwC found lapses during the tenure of Grover.
What followed was public mudslinging whereby both sides attacked each other. This is not the first time that SIAC has been involved in the matter. Earlier this year, Grover moved the tribunal seeking an immediate stop on the internal review and sought indemnity against any future action by the company. The plea was later rejected by SIAC.
(With inputs from Bismah Malik)