Corporate Affairs Ministry notice to BharatPe amidst Ashneer Grover controversy

By Team Asianet Newsable | First Published Feb 7, 2024, 1:57 PM IST

This notice follows concerns raised by the Delhi Police's Economic Offences Wing regarding financial improprieties within the organization. BharatPe has confirmed receipt of the notice, which relates to an inquiry initiated in 2022.

BharatPe, a prominent player in India's digital payments sector, faces renewed scrutiny as the Ministry of Corporate Affairs (MCA) issues another notice, demanding information regarding the company's operations and actions against co-founder Ashneer Grover. Grover, known for his prominent role in the startup ecosystem, has been embroiled in controversies that have garnered widespread attention.

According to a report by the Economic Times, the MCA's notice also seeks clarification on the findings outlined in a status report submitted by the Delhi Police’s Economic Offences Wing. The report delves into allegations of financial irregularities within BharatPe.

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Acknowledging receipt of the notice, BharatPe confirmed that it relates to an inquiry initiated in 2022. Sources cited in the report reveal that the Registrar of Companies has requested additional details from the company, as mandated by Section 206 of the Companies Act.

This is not the first time BharatPe has come under regulatory scrutiny. In 2022, the company was approached by the MCA for information regarding internal governance, investments in mutual funds, and stock options provided to independent directors, including former State Bank of India chief Rajnish Kumar.

In a separate legal development, the Delhi High Court imposed a fine of Rs 2 lakh on Ashneer Grover last year for violating court directives by making disparaging social media posts against BharatPe, despite earlier assurances to refrain from such actions. Additionally, BharatPe sought legal recourse in November by obtaining a court injunction against Grover to prevent the disclosure of confidential company information. The company also initiated arbitration proceedings in Singapore to recover Grover's restricted shares.

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