Travel to skincare: Did Madhuri Jain Grover siphon funds worth Rs 53 cr from BharatPe?
In the ongoing BharatPe saga, it is Ashneer Grover's wife Madhuri Jain who has found herself at the centre of the controversy.
- Feb 24, 2022,
- Updated Feb 24, 2022 7:32 PM IST
BharatPe’s ongoing governance review has found Madhuri Jain, former head of controls at BharatPe, of using the company funds for her own use, such as in expensive skincare, electronic product purchases and overseas travel, sources privy to the development told Business Today. The review being conducted by risk advisory firm, Alvarez and Marsel (A&M) has found that Jain, who is the wife of BharatPe's co-founder Ashneer Grover, spent over Rs 1 crore on overseas travel, an action which can amount to misappropriation of funds, multiple sources tracking the company said.
They added that the BharatPe board has also raised questions on the Grover couple allegedly purchasing properties worth Rs 20 crore in 2021, which are now under the scanner.
Jain was terminated by BharatPe on February 22 on the charge of funds embezzlement. Sources say that the review has found the misappropriation of the funds to the tune of Rs 53 crore which Jain claimed to pay to the vendors through invoices which later turned out to be fake.
“There are also huge grey areas, for instance how Madhuri, an NIFT graduate and an ex- fashion designer, was working at the level of a CFO/ CHRO in BharatPe under Ashneer’s leadership and the role her brother Shwetank Jain played. At least a dozen such employees and their roles are under question,” one of the sources said.
BharatPe confirmed to BT that the services of Madhuri Jain have been terminated under her service agreement. BT learned that under the employee contract, BharatPe has also clawed back the equity of Jain.
Queries to Ashneer Grover and Madhri Jain have remained unanswered.
Jain has meanwhile unleashed a Twitter war against BharatPe management, the company's board and the firms engaged by the fintech unicorn, including Alvarez and Marsel and Shardul Amarchand Mangaldas & Co., calling the probe a sham.
Ashneer Grover, on the other hand, has filed a plea before the Singapore International Arbitration Centre (SIAC) stating that the ongoing corporate governance review is not valid and in violation of the shareholder agreement between him and the company. Grover has also sought indemnity rights from any future liabilities in case a settlement is arrived at.
One of the sources quoted above said that BharatPe is authorised to present the report findings before SIAC and that the tribunal may take cognizance of the same.
Grover found himself in the middle of controversy earlier this year when a viral audio clip surfaced where he is allegedly heard abusing a Kotak Mahindra Bank employee over non-allotment of Nykaa shares during the IPO. Kotak Mahindra Group had confirmed that it received a notice from Grover over the issue whereas the BharatPe CEO maintained that the audio clip which went viral was fake and was orchestrated by a marketer based in Singapore.
https://www.youtube.com/watch?v=3cwOf7UeP2U
BharatPe’s ongoing governance review has found Madhuri Jain, former head of controls at BharatPe, of using the company funds for her own use, such as in expensive skincare, electronic product purchases and overseas travel, sources privy to the development told Business Today. The review being conducted by risk advisory firm, Alvarez and Marsel (A&M) has found that Jain, who is the wife of BharatPe's co-founder Ashneer Grover, spent over Rs 1 crore on overseas travel, an action which can amount to misappropriation of funds, multiple sources tracking the company said.
They added that the BharatPe board has also raised questions on the Grover couple allegedly purchasing properties worth Rs 20 crore in 2021, which are now under the scanner.
Jain was terminated by BharatPe on February 22 on the charge of funds embezzlement. Sources say that the review has found the misappropriation of the funds to the tune of Rs 53 crore which Jain claimed to pay to the vendors through invoices which later turned out to be fake.
“There are also huge grey areas, for instance how Madhuri, an NIFT graduate and an ex- fashion designer, was working at the level of a CFO/ CHRO in BharatPe under Ashneer’s leadership and the role her brother Shwetank Jain played. At least a dozen such employees and their roles are under question,” one of the sources said.
BharatPe confirmed to BT that the services of Madhuri Jain have been terminated under her service agreement. BT learned that under the employee contract, BharatPe has also clawed back the equity of Jain.
Queries to Ashneer Grover and Madhri Jain have remained unanswered.
Jain has meanwhile unleashed a Twitter war against BharatPe management, the company's board and the firms engaged by the fintech unicorn, including Alvarez and Marsel and Shardul Amarchand Mangaldas & Co., calling the probe a sham.
Ashneer Grover, on the other hand, has filed a plea before the Singapore International Arbitration Centre (SIAC) stating that the ongoing corporate governance review is not valid and in violation of the shareholder agreement between him and the company. Grover has also sought indemnity rights from any future liabilities in case a settlement is arrived at.
One of the sources quoted above said that BharatPe is authorised to present the report findings before SIAC and that the tribunal may take cognizance of the same.
Grover found himself in the middle of controversy earlier this year when a viral audio clip surfaced where he is allegedly heard abusing a Kotak Mahindra Bank employee over non-allotment of Nykaa shares during the IPO. Kotak Mahindra Group had confirmed that it received a notice from Grover over the issue whereas the BharatPe CEO maintained that the audio clip which went viral was fake and was orchestrated by a marketer based in Singapore.
https://www.youtube.com/watch?v=3cwOf7UeP2U