Delhi HC issues summons to BharatPe's ousted co-founder Ashneer Grover, family members 

Ashneer Grover and BharatPe row: Delhi High Court has issued notice and summons to fintech unicorn BharatPe's ousted co-founder and television personality Ashneer Grover, his wife Madhuri Jain Grover, and other family members to restrain them from making defamatory statements against the fintech company. It also issued summons to Grover’s father, his brother-in-law, and his brother. Justice Navin Chawla gave the Grovers two weeks' time to file replies to BharatPe's petition. The matter has been listed for January 9, 2023. 

The development came after BharatPe filed a lawsuit against Grover and his family for their defamatory comments against the unicorn. The 2,800-page lawsuit alleged Grover, his wife, and other family members created fake bills, enlisted fictitious vendors for providing services to the company, and overcharged the company for recruitment. BharatPe claimed damages worth over Rs 88.67 crore from Grover, his wife, and his brother. 

The damages include a claim for payment against invoices of non-existent vendors worth Rs 71.7 crore, a claim for penalty paid to GST authorities worth Rs 1.66 crore, payments to vendors allegedly providing recruitment services worth Rs 7.6 crore, and Rs 5 crore damages for loss of reputation to the company due to Grover and his family members’ comments and tweets. 

During the course of the hearing, senior counsel and former Attorney General of India Mukul Rohatgi, appearing for BharatPe, stated Grover, his wife, and other family members are carrying out a “vicious and vitriolic” campaign against the company. The counsel for Grover and his wife said they did not receive any copy of the suit, news agency PTI reported. 

Besides this, BharatPe has also sought disclosure of assets owned by Grover and his family members; an interim injunction against the defendants restraining them from making defamatory statements against BharatPe, its directors, employees, and/or publicizing the same; direction to the Grovers for deleting/removing all material against the company within five days; and orders to BharatPe to approach social media platforms, media organisations, publications, websites, blogs, etc. to seek deletion/removal of all such material. 

Apart from the petition with Delhi High Court, BharatPe has filed a separate complaint against the mercurial television personality, his wife, and other family members alleging 17 counts of fraud with the Economic Offences Wing. Charges against the Grovers include criminal breach of trust, cheating, embezzlement of funds, and siphoning of funds. 

Commenting on the legal tussle between the Grovers and BharatPe, a company spokesperson said, “We have full faith in the courts and authorities and are confident that justice will be done. As the matter is sub-judice, we have no further comment to offer at this stage.”

BharatPe is not new to controversy as the company was in news earlier this year after an alleged audio clip of Ashneer Grover 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 went viral.  

Later, the fintech unicorn appointed Alvarez and Marsal, Shardul Amarchand Mangaldas, and PwC to conduct a corporate governance review to ascertain whether the Grovers were involved in willful misconduct. 

After this, Madhuri Jain Grover was ousted from the company and its board for alleged misappropriation of company funds. Following this, Ashneer stepped down from the company board and was ripped off the co-founder title due to alleged “extensive misappropriation of company funds” by “creating fake vendors” to siphon money. The company has also accused Grover and his wife of using “company expense accounts” to “enrich themselves and fund their lavish lifestyles.”

In May this year, the company decided to take action against employees involved in misconduct and also cut Ashneer Grover’s restricted shares.

(With PTI inputs)

Also read: BharatPe initiates criminal proceedings against Ashneer Grover & wife, claims Rs 88.6 crore

Also read: 'There is no BharatPe without me': Ashneer Grover reacts after top executives quit the fintech firm