BharatPe has sacked Madhuri Jain Grover, wife of the fintech firm's co-founder and managing director Ashneer Grover, over alleged financial irregularities and cancelled ESOPs vested with her.
Why the ESOPs were cancelled?
Jain Grover is alleged to have used company funds for personal beauty treatments, buying electronic items and family trips to the US and Dubai, sources with direct knowledge of the matter said.
Besides, she also allegedly paid her personal staff out of company accounts and produced fake invoices from known/friendly parties, they added.
Sources said that review found that Madhuri Grover allegedly shared confidential information that was used by her father and brother to create and raise invoices on the company under the camouflage of certain third parties.
She is alleged to have billed the company for personal expenses including those towards 'laser genesis and clearlift' face treatment in April 2021 as well as televisions (a LED TV and a Sony Bravia 65-inch) and a fridge for her residence.
Other allegations against her include US and Dubai trip for family members being charged back to the company, inflated purchases of marketing and branding products, fake quotes procured from friendly parties and salary of main and personal staff being paid from the company.
All the bills were approved by her, they said.
She was financial in-charge of the company since October 2018.
While an email sent to Jain Grover for comments remained unanswered, a company spokesperson confirmed the termination, PTI said.
BharatPe confirms termination
''As per your query, we can confirm that services of Madhuri Jain Grover have been terminated in accordance with the terms of her employment agreement,'' a BharatPe spokesperson said.
The spokesperson did not give reasons for the termination.
Her services were terminated effective February 22.
Sources, however, said action follows an external audit commissioned by BharatPe board to look into the conduct of Grovers.
Stock options vested with Jain Grover cancelled
Stock options vested with Jain Grover have also been cancelled, they said adding the alleged financial irregularities have been detailed in the termination letter.
Her husband, Ashneer Grover was sent on a three-month leave following allegations of using abusive language against Kotak Mahindra Bank staff and fraudulent practices. He has denied all allegations.
She was last month sent on leave within days of her husband announcing a three-month leave of absence following allegations of using abusive language against Kotak Mahindra Bank staff and fraudulent practices. Ashneer Grover has denied all allegations.
Advisory firm to conduct governance review
BharatPe engaged risk advisory firm Alvarez and Marsal to conduct a governance review.
Earlier this month, it was reported that Madhuri Grover had resigned but she is said to have written to the board, saying she never tendered her resignation that was 'accepted' by the company.
Sources said her resignation was offered by her husband in the January 19 board meeting. He immediately took back his decision and called it spontaneous.
She was asked to be on compulsory leave of absence on January 20.
On February 20, she had also written to independent consultant A&M demanding an explanation on how the contents of the probe into the financial practices of the company were leaked.
In a report by A&M, it was alleged that Madhuri Jain Grover and her family members, brother Shwetank Jain and brother-in-law Deepak Jagdishram Gupta were involved in financial irregularities at the company.
The allegations included anomalies in recruitment and paying non-existent vendors.
Suhail Sameer, Chief Executive of BharatPe, in a communication to employees on February 11 had stated that there were a couple of ''serious allegations'' of governance lapses, which warranted a fine toothcomb audit of governance practices by outside experts.
''Based on some internal complaints, we decided to do a full audit of our governance processes,'' he had said. ''While many of the findings of the review are pretty standard for a fast-growth company of our size, there are a couple of more serious allegations, which the review is still substantiating.''
How it all began
BharatPe was better known for its QR code aggregator app, service and surprise bank licence until an audio clip surfaced on social media with claims of Grover, who is co-founder and managing director of the firm, abusing and threatening a Kotak Mahindra Bank employee for missing out on share allotment during the initial public offer of FSN E-Commerce Ventures, which operates online fashion and wellness company Nykaa.
Later, Ashneer Grover reportedly stated that he was ''arm-twisted'' by the company's investors into going on leave and had lost confidence in CEO Sameer Suhail, and he should be removed.
Shashvat Nakrani, the fintech firm's other founder, however, threw his weight behind the chief executive, saying Suhail continues to enjoy his confidence.
Ashneer Grover in media interviews earlier this month reportedly stated that the current CEO does not have his support and that he is the ''investors' puppet''.
He has reportedly stated that he will leave the company only if an investor buys out his 9.5 percent stake for Rs 4,000 crore ($6 billion valuations for BharatPe).
Nakrani confirmed that he has not given any consent or demanded the removal of Suhail Sameer from the board.
This has complicated Grover's pursuit to oust Sameer as both the founders need to consent jointly to remove the CEO.
BharatPe serves over 75 lakh merchants across 150 cities. Its investors include Tiger Global, Dragoneer Investment Group, Steadfast Capital, Coatue Management, Ribbit Capital and others.
(With PTI inputs)
