BharatPe sacks co-founder Ashneer Grover's wife Madhuri Jain over financial irregularities
While a company spokesperson confirmed the termination, sources with direct knowledge of the matter said BharatPe has cancelled all the 244 unvested and 56 vested employee stock options (ESOPs).
BharatPe has sacked its head of controls Madhuri Jain Grover - wife of embattled co-founder Ashneer Grover - for alleged financial irregularities ranging from producing fake invoices to billing the company for personal beauty treatment and trips abroad.
While a company spokesperson confirmed the termination, sources with direct knowledge of the matter said BharatPe has cancelled all the 244 unvested and 56 vested employee stock options (ESOPs).
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Madhuri Grover did not immediately respond to an email sent seeking her comments.
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.
BharatPe engaged risk advisory firm Alvarez and Marsal to conduct a governance review.
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.
"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, however, did not give reasons for the termination.
Her services were terminated effective February 22.
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 had 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-tooth-comb 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."
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 per cent stake for Rs 4,000 crore (USD 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.
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