In December 2022, BharatPe had filed a complaint with the Economic Offences Wing (EOW) of the Delhi Police, which had then registered a first information report (FIR).
The Grovers had moved the Delhi High Court seeking to have the FIR quashed, and had sought a stay on the probe in the interim.
In its complaint, BharatPe had alleged that it had been able to “unearth embezzlement to the tune of Rs 81.28 crore, through its internal investigation”.
BharatPe had alleged in the complaint to the EOW that Grover and his family members were indulging in malpractices such as creating fake bills and enlisting fictitious vendors to provide services to the company.
During the hearing on Thursday, the Grovers also urged the court to ask the Delhi Police to issue advance notice in case they wanted custody of the couple. To this, the court said that the petitioners could take other remedies available to them under the law.
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“This court is of the view that no case is made out at this stage for staying the (Delhi Police) investigation,” the order said. “…so far as prayer about advance notice is concerned, petitioner is at liberty to adopt other remedies available to them in accordance with law,” the court advised.The Delhi High Court also issued notices to BharatPe and Delhi Police in connection with this case.
Appearing for the Grovers, advocate Giriraj Subramanium argued that the allegations mentioned in the FIR pertained to certain transactions that they conducted in their capacity as the senior management of the fintech platform. He also submitted that the annual report of the company for the year 2021-22 (April-March) did not reflect any fraud.
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Last January, BharatPe’s board had hired independent auditors Alvarez & Marsal, and PricewaterhouseCoopers, after receiving complaints from an internal whistleblower on alleged financial malpractices and corporate misgovernance at the fintech company. This had led to the ouster of Madhuri Jain Grover.
Following this, cofounder Ashneer Grover also resigned from the company and its board in March. Soon after, BharatPe alleged that he had tendered his resignation “after receiving the agenda for an upcoming board meeting that included submission of the PwC report regarding his conduct”.
Opposing the petition filed in the Delhi High Court on Thursday, BharatPe’s lawyers submitted that the Grovers conducted complex financial transactions, which resulted in embezzlement of funds from the company.