Ashneer Grover-Kotak row: BharatPe orders audit of company's internal processes

Digital payments firm BharatPe on Saturday said that the company is committed to the highest standard of corporate governance and is doing an independent audit of its internal processes and systems.

The move comes following the public dispute between BharatPe co-founder and MD Ashneer Grover and Kotak Mahindra Bank group.

"The board of BharatPe is committed to the highest standard of corporate governance at the company and is doing an independent audit of the company's internal processes and systems," the company said in a statement.

BharatPe, through its legal firm, Shardul Amarchand Mangaldas has appointed leading management consultant and risk advisory firm Alvarez and Marsal to advise the board on its recommendations.

"The board strongly believes in protecting interests of all stake holders, including customers, employees and partners. We request the media not to speculate until audit findings have been completed," it added.

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Earlier, an audio clip had went viral on social media allegedly featuring Grover and a family member hurling abuses on a Kotak Group employee for not getting share allotment in Nykaa's initial public offering (IPO).

Grover also sent a legal notice to Kotak Mahindra Bank, seeking damages from Uday Kotak, head of Kotak Mahindra Bank, alleging that the bank declined financing for a personal investment.

The Kotak Group had said that it replied to appropriately to the notice, including placing on record its objections to inappropriate language used by Grover.

On January 19, Grover announced that he is taking a voluntary leave of absence from the company till March-end.

Earlier, Reuters had reported that the independent audit will assess if BharatPe's senior executives are making proper internal disclosures about personal investments and check for conflicts, leading to a new code of conduct. 

Tiger Global, Sequoia Capital, Beenext, and Insight Partners are amongst the ivnestors of BharatPe, which allows shop owners to make digital payments through QR codes.  

(With agency inputs)

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