Ashneer Grover moves NCLT, alleges oppression, mismanagement at BharatPe

Ashneer Grover moves NCLT

Ashneer Grover, former managing director of BharatPe, has moved the National Company Law Tribunal (NCLT), Delhi, alleging opression and mismanagement at the company.

The case came up for hearing on December 6, wherein his lawyer sought additional time to address the tribunal on maintainability. The case will be heard next on January 11.

According to the plea, reviewed by Moneycontrol, Grover has filed the plea against BharatPe holding company Resilient Innovations and 11 of its directors including Shashvat Nakrani, Rajnish Kumar and John Bernard Weinstein.  The plea alleges that Grover was ousted from the company in an 'arbitrary manner in excess exercise of powers in order clawback his restrictive shares illegally and without complying with law.'

Grover alleges in the plea that the arbitrary conduct of the board of directors of the company are demonstrated by them sending him on leave last year over a 'fabricated issue that had nothing with the company. The plea also states that the oppression and mismanagement of the company is evident from the exit of various key members from the company including its founder and Chief Executive Officer (CEO). According to the plea, the actions of the company through its board of directors have cause huge losses to the company.

Citing many such instances, Grover has asked the NCLT to

1. To declare the actions of the board of directors as oppressive;
2. Any change in management of the company by altering its board of directors as void
3. Direct an audit of BharatPe by Ministry of Corporate Affairs
4. To revert back any new shares/ESOPs since Grover's resignation in March 2023
5. Reinstate Grover as MD, revoke Madhuri Jain's termination
6. Remove board members inducted after Grover's resignation in March 2023
7. To retain his restricted shares in the company at price offered by the company for buy-back

The plea has been filed under Sections 241 and 242 of the Companies Act 2013. Section 241 empowers a member of the company to move NCLT if "the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial". Section 242 deals with the powers of the tribunal.

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

While Grover took a voluntary leave and later resigned as the company's MD, his wife, former head of controls Madhuri Jain, was fired over allegations of misappropriation of funds.

In February last year, the SIAC denied Grover's appeal to block an internal investigation on multiple grounds.

Grover and the founders of BharatPe are fighting litigations in the Delhi High Court.