BharatPe, the fintech firm that has long been in the spotlight for its disputes, has finally reached a settlement with former co-founder Ashneer Grover. This agreement brings an end to a prolonged period of legal conflicts between both parties.
Both parties have agreed to drop the legal cases they filed against each other. As per the settlement, a part of Grover's shares will be transferred to the Resilient Growth Trust whereas the remaining shares will be managed by his family trust
BharatPe, the fintech firm that has long been in the spotlight for its disputes, has finally reached a settlement with former co-founder Ashneer Grover. This agreement brings an end to a prolonged period of legal conflicts between both parties.
As per sources cited in a report by moneycontrol, the settlement states that Grover will have no ties with the company in any capacity. Besides this, the co-founder will also refrain from being a shareholder in the company.
Both parties have agreed to drop the legal cases they filed against each other. As per the settlement, a part of Grover's shares will be transferred to the Resilient Growth Trust whereas the remaining shares will be managed by his family trust.
Another source cited in the report mentioned that the co-founder will transfer 1.4 per cent of his holdings to the BharatPe board. The remaining 3.5-3.7 per cent will be allocated to a family trust, effectively removing him from the company’s cap table. On top of it, he will be returning shares to BharatPe's other co-founder, Bhavik Koladiya.
Earlier last year, Koladiya alleged that he had transferred 1,611 shares of BharatPe (now totaling 16,110 shares) worth Rs 88 lakh to Grover but did not receive any payment. This matter eventually went to court, leading to a restriction on Grover from selling these shares.
The fintech firm has long been making headlines as the top-level executives of the company remained muddled up in legal woes. However, the decision to resolve disputes comes shortly after Deepak Gupta, who is also a relative of Ashneer Grover (former managing director and co-founder of BharatPe), was arrested by the Economic Offences Wing (EOW) of Delhi Police. He was accused of misusing funds from the fintech company.
BharatPe has accused the former Shark Tank judge and his family members of multiple wrongdoings that have allegedly resulted in significant financial losses for the company. This includes inflating costs and making unnecessary payments through vendors linked to Grover.