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Ashneer Grover, the former shark and managing director of BharatPe and former, has reportedly accused ex-SBI Chairman Rajnish Kumar, the current chairman of BharatPe's board, of allocating equity shares worth hundreds of crores to himself since his induction into the board in October 2021.
According to an ET report, Grover alleges that Kumar's actions are part of a broader issue involving fraudulent transactions and misrepresentations to the Reserve Bank of India (RBI).
Salary hike controversy
In addition to the equity allocation, Grover claims that Kumar increased his salary to Rs 1.5 crore annually, which is three times his initial compensation upon joining the board. This significant hike in salary, according to Grover, warrants an investigation by the RBI into Kumar's involvement in the ongoing disputes over company shares.
BharatPe's response
In response to Grover's allegations, a BharatPe spokesperson has dismissed the claims as "baseless and without merit," labeling them as a "desperate attempt to malign the company." The company has also stated that it is pursuing civil and criminal action against Grover and expressed confidence in the judicial system.
Calls for investigation
Grover has written to the RBI, urging an investigation into whether BharatPe's board and investors temporarily held or "warehoused" shares belonging to co-founder Bhavik Koladiya. He questions the regulatory approvals received by BharatPe, including a 49% stake in Unity Small Finance Bank and a controlling interest in non-banking finance company Liquiloans, suggesting that these approvals might not have been granted if the alleged share warehousing was disclosed.
Potential consequences
Grover's letter to the RBI, which is his second such communication, calls for a thorough investigation into the company's management and board.
He suggests that if BharatPe's management is found guilty, the regulator should blacklist the board of directors and consider canceling the licenses owned by the company. Grover's allegations come amidst a backdrop of legal battles and investigations into BharatPe by the Ministry of Corporate Affairs and other authorities.