BharatPe reaches settlement with Ashneer Grover, ending years of legal battles and public disputes

New Delhi-based fintech unicorn BharatPe has reached a settlement with its co-founder, Ashneer Grover, ending years of legal battles and public disputes between the two parties.

The settlement comes nearly two weeks after Deepak Gupta, who is married to Ashneer Grover's wife, Madhuri Grover, was taken into custody by the Economic Offences Wing (EOW) of the Delhi Police on September 19, 2024.

CNBC-TV18 earlier reported Gupta was arrested in connection with allegations of misappropriating company funds. The arrest was part of an ongoing investigation into an alleged Rs 81 crore fraud at BharatPe.

The fintech unicorn filed a criminal complaint in December 2022 against Ashneer Grover, his wife Madhuri Jain Grover, her brother Shwetank Jain, her father Suresh Jain, and Deepak Gupta.

The EOW had also formally registered an FIR in May 2023, naming the five individuals as accused.

No longer association with BharatPe

Under the terms of the agreement, BharatPe said that Grover will no longer be associated with the company in any capacity nor be a part of the company's shareholding.

Certain shares of Ashneer Grover will be transferred to the Resilient Growth Trust for the benefit of BharatPe, while the remaining shares will be managed by his family trust.

Notably, both parties have decided not to pursue the cases filed.

Ashneer Grover shares a LinkedIn post

"I have reached a decisive settlement with BharatPe. I repose my faith in the management and board, who are doing great work in taking BharatPe forward in the right direction. I continue to remain aligned with the company's growth and success," Grover shared in a LinkedIn post.

"I will no longer be associated with BharatPe in any capacity nor be part of the capital table. My remaining shares will be managed by my Family Trust," he said.

"I hope BharatPe continues to grow and succeed for the benefit of all its stakeholders," Grover added.

Grover to return shares to co-founder Bhavik Koladiya

Grover will also return shares to BharatPe co-founder Bhavik Koladiya. In January 2023, Koladiya alleged that he transferred 1,611 shares of BharatPe (now 16,110 shares) worth Rs 88 lakh to Grover but never got paid for these shares.

The matter was later taken to court, where Grover was barred from selling those shares.

“We wish Mr. Grover well. BharatPe continues to focus on delivering industry-leading solutions to its merchants and customers, driving growth with profitability," the company said.

BharatPe had accused Ashneer Grover and his family of financial misconduct between 2019 and 2021. 

According to reports, the alleged misconduct involved making illegitimate payments to fake HR consultants, inflating payments to vendors with personal ties, fabricating transactions to claim input tax credit, and making unlawful payments to travel agencies.

The investigations into the alleged financial irregularities began following Ashneer Grover's controversial exit from BharatPe in 2022. His wife, Madhuri Jain Grover, who served as the company's Head of Controls, was also fired as a result of the fallout.