BharatPe files arbitration to claw back Grover's 1.4 per cent shares

Grover, who BharatPe has accused of cheating and embezzlement of funds, holds about 8.5 per cent of the company.
Former BharatPe Co-founder and managing director Ashneer Grover. (LinkedIn Photo | Ashneer Grover)
Former BharatPe Co-founder and managing director Ashneer Grover. (LinkedIn Photo | Ashneer Grover)

BENGALURU: After filing a civil suit and a criminal complaint against BharatPe’s former MD Ashneer Grover, the fintech unicorn has now filed arbitration under the Singapore International Arbitration Centre (SIAC) to clawback Grover’s restricted shareholding and the founder title.

According to sources familiar with the development, the arbitration proceedings have been initiated since
Grover refused to comply with shareholders' agreement. BharatPe had earlier sent a legal notice, and it has now initiated the proceedings.

Grover holds about 8.5% stake in the fintech unicorn and of which, 1.4% was not vested and released on the date of his resignation. Sources added that if relief is granted, Grover may lose his unvested shares (1.4%) and the right to use the founder title.

Earlier in May, the fintech firm had said that it has initiated necessary action against the former founder Grover to clawback his restricted shares as per the shareholders’ agreement and that it will take all steps to enforce its rights.

Sources said it has been urged that SIAC award Grover’s restricted shares to BharatPe co-founder Shashvat Nakrani for a consideration of over Rs 33 lakh. Grover went on a voluntary leave in January, and after that the board started conducting an independent audit of the firm’s internal process.

In February, Grover lost the arbitration he had filed against the company’s investigation. It was rejected on all five grounds, sources said. BharatPe has filed a civil suit and a criminal complaint against the former MD, his wife Madhuri Jain, and other family members for misappropriation of company funds. BharatPe has sought over `88 crore in damages from them. The Delhi high court on Thursday issued a summons and asked Grovers to file their response within two weeks.

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