BharatPe gets Ministry of Corporate Affairs notice under Section 206 in ongoing enquiry

While Grover resigned as BharatPe managing director in the aftermath of the spat, the company started a forensic audit into financial practices under his watch

Fintech unicorn BharatPe has received a notice from the Ministry of Corporate Affairs (MCA) under Section 206 of the Companies Act asking for information about legal proceedings initiated by the company against its founder Ashneer Grover.

Sources told Moneycontrol that the MCA has written to the company asking for evidence it has submitted to the courts about the civil and criminal complaints against Grover.

"There is an additional information requirement from the ROC via a letter to the company. The information required is part of the ongoing inquiry, which started in 2022 post the internal governance review, and has been mentioned in our audited results. We are extending all possible cooperation to the authorities," BharatPe said in a statement.

Since the beginning of 2022, the four-year-old company has been embroiled in controversy after its founder was accused of using inappropriate language and threatening a Kotak Group employee for failing to secure an allotment in the Nykaa IPO.

While Grover resigned as BharatPe managing director in the aftermath of the spat, the company started a forensic audit into financial practices under his watch.

Later, it filed a civil lawsuit against him, which alleges an astounding web of fake bills and misappropriation of company funds for personal use.

In addition to the accusations around dubious transactions and fake vendors, the company in its lawsuit alleged that Grover contributed nothing to the BharatPe technology or concept. It said that his association with the company began in 2018 when he made a ‘paltry’ investment of Rs 31,920, for which he received 3,192 shares.

(This is a developing story. Please check back for details.)