BharatPe, the digital payments firm, has received another notice from the Ministry of Corporate Affairs (MCA) requesting details about its operation and the actions it has taken against co-founder Ashneer Grover. The MCA has also raised questions about the conclusions of a status report filed by the Economic Offences Wing of the Delhi Police, which had investigated allegations of financial irregularities at BharatPe, The Economic Times reported citing sources aware of the matter.
The company has acknowledged the receipt of the notice and stated that it is linked to an investigation that began in 2022. The Registrar of Companies, a division of the MCA, has asked for additional information in a letter, as per a BharatPe spokesperson.
In 2022, the MCA had asked BharatPe for information about its internal governance, mutual fund investments, and stock options given to independent directors including former State Bank of India (SBI) chairman Rajnish Kumar.
The notice to BharatPe was issued under Section 206 of the Companies Act, which requires companies to provide the information requested by the registrar and gives the MCA the authority to inspect a company's books or call for an investigation.
BharatPe has stated that the requested information is part of an ongoing inquiry disclosed in its audited results. The company is fully cooperating with the authorities, according to the spokesperson. BharatPe is also involved in a legal dispute with cofounder Grover and his wife, Madhuri Jain, who was the company's Head of Controls.
The new notice comes as fintech firms face increased scrutiny from the government and regulatory bodies over compliance and internal governance issues. Last week, the Reserve Bank of India directed Paytm's payments bank division to stop accepting deposits and providing banking services after February 29.
In December 2022, the fintech firm filed a civil suit in the Delhi High Court against Grover and his family, seeking up to Rs 88.67 crore in damages for alleged embezzlement of funds. The company has also sought an injunction from the court to prevent Grover from revealing confidential information related to the company and has initiated arbitration in Singapore to recover Grover's restricted shares.
In November last year, Grover appeared before the Economic Offences Wing of the Delhi Police for questioning in the alleged fraud case.
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