BharatPe Sacks Staff And Vendors; To Claw Back Shares From Ashneer Grover

Payments startup BharatPe said on Tuesday that the company has terminated several employees and vendors and filed criminal cases against them for misconduct. BharatPe also decided to claw back former founder Ashneer Grover’s restricted shares in the company.

The company has witnessed a tussle between promoters and investors in recent days. BharatPe said in a statement, “Many vendors involved in malpractices, such as incorrect or inflated invoices, have been blocked from further business with the company.”

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New policies of the firm

The firm has now introduced a new vendor procurement policy to mitigate any risk of employees indulging in suspicious transactions. BharatPe said it brought the policy to avoid a repeat of alleged lapses that happened when Grover was MD of the firm.

BharatPee also introduced a new code of conduct for senior management and employees. It also introduced other measures, including Key personnel appointments, including a CHRO, an internal audit on a regular basis, and IT infrastructure management.

Corporate governance review report

Earlier, the firm conducted a detailed corporate governance review against the backdrop of alleged lapses during the tenure of Grover as MD of the company.  BharatPe initiated a corporate governance review of the company earlier in January 2022. The review was carried out by Alvarez & Marsal, Shardul Amarchand Mangaldas & Co and PwC. They also recommended several decisive measures. Subsequently, BharatPe introduced several measures and policies.

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Consequently, BharatPe said necessary action had been initiated against the former founder to claw back his restricted shares. Grover currently holds roughly 8.5 per cent in BharatPe.

Ashneer Grover

Earlier, Ashneer Grover was ousted from all responsibilities by the BharatPe board in March. BharatPe accused him and his wife Madhuri Jain of allegedly engaging in extensive misappropriation of company funds. The firm also said that they used the company’s fund to live a lavish life.