New Delhi: Fintech firm BharatPe on March 2 said it has removed Co-Founder Ashneer Grover from all positions at the company.
BharatPe has also found involvement of Mr. Grover’s family and relatives in extensive misappropriation of the company’s funds.
“The board will not allow the deplorable conduct of the Grover family to tarnish BharatPe’ s reputation or that of its hard-working employees and world-class technology. As a result of his misdeeds, Grover is no longer an employee, a founder, or a director of the company,” BharatePe said in a statement on Wednesday. Grover resigned from the post of Managing Director on Tuesday.
According to the statement , Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company’s account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles, it said.
“The company reserves all rights to take further legal action against him and his family,” it said, an indicator of a bitter legal fight ahead between the two sides.
“As a result of his misdeeds, Mr. Grover is no longer an employee, a founder, or a director of the company,” effectively showing him the door.
It further said that the Board is taking all necessary steps to further strengthen the company’s corporate governance, including the appointment of an audit committee, an internal auditor, and the implementation of other key internal controls.
“The success of BharatPe is a result of the collective effort of a large team of dedicated and talented professionals, and not any one individual. We are confident that the company is marking the beginning of a new chapter in its success–one grounded in trust and integrity–and we are excited to embark upon this next leg of our journey.”
The board, led by former SBI chairman and veteran banker Rajnish Kumar, met to table the final report of a governance review by independent consultant PwC on March 1. It came nearly 24 hours after Grover resigned from the company, claiming he was vilified.