Arbitration filed against Ashneer Grover’s 1.4%shares
- ByStartupStory | December 10, 2022
According to sources with direct knowledge of the situation, the arbitration was filed on Thursday under the rules of the Singapore International Arbitration Centre (SIAC). Grover may lose his unvested stocks and the right to use the founder title if relief is granted. Grover, who BharatPe accuses of fraud and embezzlement, owns approximately 8.5% of the company. One-fourth of this is not vested. The practise follows a thorough corporate governance research by the company’s board into allegations of lapses and misdeeds during Grover’s tenure as managing director.
According to sources, the arbitration proceedings were introduced after Grover didn’t comply with the shareholders’ agreement. Following a civil suit in the Delhi High Court and a criminal complaint with the Economic Offences Wing, this is BharatPe’s third legal action against Grover.
Grover, his wife Madhuri Jain, and other family members, according to BharatPe, generated phoney bills, engaged fictional vendors to supply services to the company, and overcharged the firm for recruitment. It is claiming damages of up to Rs 88.67 crore.
The corporate governance assessment conducted by Alvarez and Marsal, Shardul Amarchand Mangaldas, and PwC resulted in Jain’s dismissal and Grover’s resignation from the firm and its board in March.
According to sources, the corporation had previously submitted a legal notice for overpayment and has now launched arbitration process. Unvested shares can be clawed back under the terms of the shareholder agreement. Grover currently owns 8.5% of BharatPe, of which 1.4percent of total was not vested and was released on the date of his resignation. Grover’s plea in SIAC on the probe against him was denied on all five grounds in February. PTI ABM ANZ ANZ ABM
Follow Startup Story
Related Posts
