BharatPe: Legal issues with co-founder Ashneer Grover resolved

Business: Fintech company BharatPe has agreed to settle its long-running dispute with former co-founder Ashanya Grover, ending a long-running legal battle and public controversy. As part of the deal, Grover will have no association with BharatPe and will not hold any shares in the company. “A portion of Mr Grover’s shares will be transferred to the Resilient Growth Trust for the benefit of the company and the rest of the shares will be managed by the family trust,” a BharatPe statement said. Both parties agreed not to make any legal claims against each other.

The settlement comes after the arrest of close relatives of Mr Grover and his wife Madhuri Grover by the Delhi Police’s Economic Offences Wing (EOW) in connection with the alleged misappropriation of funds from a fintech startup. It is unclear whether the settlement will impact the EOW’s ongoing investigation. I have signed a definitive agreement with BharatPe. The dispute between the two parties began in January last year when an audio clip was released that allegedly showed Schnell abusing a Kotak Bank employee, and the bank said that Schnell, who wanted to take legal action, had done so and was eventually sent on leave.

A fake email exchange between him and BharatPe’s largest shareholder was revealed in March, further increasing tensions between the two parties. Moreover, BharatPe went on leave following these incidents. An independent investigation into the company’s actions during Grover’s tenure resulted in A&M’s preliminary report accusing Madhuri in February and subsequently ousting her over embezzlement of funds from BharatPe.