BharatPe co-founder Ashneer Grover goes on voluntary leave, firm begins independent audit

BharatPe co-founder and managing director Ashneer Grover has gone on a voluntary leave till March-end. A week after the announcement, his wife Madhuri Jain Grover, who is the Head of Controls at BharatPe, has also gone on leave. This comes amid the news of the firm undertaking an independent audit of its internal processes and systems

The development follows a controversy involving an audio clip, which was posted on social media, in which BharatPe co-founder Ashneer Grover is heard verbally abusing a Kotak Mahindra Bank employee.

Ashneer Grover has been in news lately as he is one of the sharks on Shark Tank India show.

What is the controversy about?

An audio clip had surfaced on social media earlier this month, in which Ashneer Grover was heard abusing and threatening a Kotak Mahindra Bank employee for missing out on share allotment during the Nykaa initial public offering (IPO). 

Though Grover has rubbished the clip calling it fake, there are reports that suggest that Grover and his wife had sent a legal notice to Kotak in October 2021 over failure to provide financing for the Nykaa IPO.

The bank had acknowledged the notice publicly on October 30 and responded on January 9 stating it will take legal action against Grover.

Ashneer Grover announces voluntary leave

Ashneer Grover informed the BharatPe board that he was going on a voluntary leave till March-end on January 19. BharatPe confirmed the same in a formal statement that read, "For now, the Board has accepted Ashneer's decision which we agree is in the best interests of the company, our employees and investors, and the millions of merchants we support each day. BharatPe will continue to be ably led by our CEO Suhail Sameer and our strong management team."

BharatPe launches independent audit

BharatPe released a formal statement on January 29, 2022 informing that it has initiated an independent audit of the "company's internal processes and systems". The company has appointed Alvarez and Marsal, a leading management consultant and risk advisory firm, to advise its board.

BharatPe's statement further read that its board strongly believes in protecting the interests of all stakeholders, including customers, employees and partners.