The Ministry of Corporate Affairs, Government of India has issued a notice to fintech company BharatPe. This notice has been issued under Section 206 of the Companies Act, in which the government has sought information from the company about the legal action taken against its founder Ashneer Grover.
The fintech company came into controversy in the year 2022 when the company's founder Grover used objectionable language against a Kotak Group employee and threatened him. Actually, Kotak Group employee Nykaa could not secure the allotment during the IPO of the company. Following the controversy, Grover had resigned from the post of Managing Director of BharatPe and the company had decided to get its financial accounts audited.
Later, the company filed a civil case against him. In this, there were allegations of fake bills and misuse of the company's funds for personal use. Apart from the allegations of fraudulent transactions and fake vendors, BharatPe alleged in its lawsuit that Grover had not contributed to business ideation. The company had also said that Grover joined the company in 2018 and at that time he had made a nominal contribution of Rs 31,920.
The company has also issued a statement regarding the development in which it has been said that the Registrar of Companies has asked for some information. This information sought is part of an already ongoing investigation that started after an internal governance review. The company said that it is cooperating with the authorities.