Ashneer Grover resigns as BharatPe MD and director

Ashneer Grover, co-founder of BharatPe.

Ashneer Grover, who has been engaged in a battle with the board of fintech BharatPe, has resigned as MD and director, days after his wife Madhuri Jain Grover had been terminated as the head of controls on allegations of funds misappropriation, CNBC-TV18 reported.

In his letter of resignation to the board, Ashneer Grover said: "I write this with a heavy heart as today I am being forced to bid adieu to a company of which I am a founder. I say with my head held high that today this company stands as a leader in the fintech world. Since the beginning of 2022, unfortunately, I’ve been embroiled in baseless and targeted attacks on me and my family by a few individuals who are ready not only to harm me and my reputation but also harm the reputation of the company, which ostensibly they are trying to protect."

This comes after Moneycontrol reported on February 27 that BharatPe cofounder Grover's emergency arbitration plea challenging the firm's decision to conduct a governance review had been rejected by the Singapore International Arbitration Centre (SIAC).

In an interaction with Moneycontrol, Grover questioned the board's intent to launch a governance review.

"Here is my question to the board. What was the need for a governance review in the first place?" he said.

Grover also questioned the media leaks, after parts of the audit report by Alvarez and Marsal had started circulating in social media.

In his resignation letter, Grover wrote: "From being celebrated as the face of Indian entrepreneurship and an inspiration to the Indian youth to build their own businesses, I am now wasting myself fighting a long, lonely battle against my own investors and management. Unfortunately, in this battle, the management has lost of what is actually at stake – BharatPe."

On January 28, BharatPe disclosed it had hired Alvarez to conduct a governance review of the company. The next week, it confirmed it had also roped in PwC.

Moneycontrol also reported on February 7 that the decision to bring PwC after hiring Alvarez was a step towards terminating the services of Madhuri Jain Grover and Ashneer Grover, as their ouster can only happen after a report by a Big 4 audit firm indicts them.

According to a preliminary report by Alvarez conducted in January, inconsistencies were found in dealings with vendors. The report had flagged payments to vendors and consultants that were non-existent.

Allegations and counter allegations have become the new norm at beleaguered fintech BharatPe. Soon after the embattled co-founder Ashneer Grover launched an attack on the chairman of the board of directors Rajnish Kumar and co-founder Bhavik Koladiya alleging the governance review was riddled with prejudice, the company accused him of spreading false information which it says is not appropriate for a managing director.

"You have been indulging in spreading false and accusatory information about the senior management of the company to the family members and/or spouses of the said members of the senior management. Such abhorrent conduct on your part is completely unwarranted, and the company takes strong objection to the same. You are again called upon to cease and desist from spreading false and inflammatory content about the members of the senior management of the company. Your conduct in this regard is completely unbecoming of a managing director of the company," the firm said in its response letter to Grover's email on February 22.

The company did not specify which information it was referring to where Grover allegedly had reached out to the spouses of people under question.

I am now wasting myself fighting a long, lonely battle against my own investors and management.

- Grover

While the company has acknowledged the call between Grover and Koladiya, it declined Grover's claims that it happened from the residence of Kumar. Calling it a personal conversation between Koladiya and Grover, BharatPe alleged that the audio clip shared by him does not relate to any "official communication" of the company with him.

Grover had taken a leave of absence till March-end amid backlash regarding his abusive language to a Kotak employee, toxic culture at BharatPe, and brash behaviour. His wife was also sent on leave.