Former BharatPe MD Ashneer Grover and wife move Delhi High Court to quash look out circular

In a recent development, Ashneer Grover, the former Managing Director of BharatPe, and his wife, Madhuri Jain Grover, have petitioned the Delhi High Court to annul the Look Out Circular (LOC) issued against them amidst an ongoing investigation into a case involving allegations of cheating and forgery.

The matter, presided over by Justice Subramonium Prasad, was brought before the court on Thursday. Justice Prasad scheduled the hearing for May 8, asserting that the investigation by the Delhi Police's Economic Offences Wing (EOW) is still in its early stages.

At the hearing, the court remarked that it would be premature to intervene at this juncture, citing the nascent phase of the investigation. It emphasized the need for time to conduct a thorough inquiry, stating that it would not be prudent to deem the LOC entirely unjustified at present.

In their plea, Grover and his wife sought interim relief, urging the court to suspend the LOC and instruct authorities not to impede their right to international travel. The court, in response, instructed relevant authorities to review the couple's application for permission to travel abroad for a brief period.

The court also acknowledged that the Grovers have a pending plea seeking the quashing of the First Information Report (FIR) filed by the EOW.

Representing the Grover couple, their legal counsel asserted their cooperation with the investigation and highlighted multiple ongoing legal proceedings. They argued for the quashing of the LOC, contending that its issuance was unjustified, given their regular cooperation with the investigating officer.

The couple revealed that they were first made aware of the LOC when detained at the Indira Gandhi International Airport on November 16, 2023, while en route to the United States. They were informed that the LOC had been active since November 6, 2023.

The FIR filed by the EOW in May last year accuses Grover, Madhuri, and others of multiple offences under the Indian Penal Code, including criminal breach of trust, cheating, forgery, and using forged documents. The complaint, lodged by fintech unicorn BharatPe, alleges fraudulent activities amounting to approximately Rs 81 crore.

BharatPe's complaint accuses the Grover family of orchestrating various fraudulent activities, including illicit payments to fictitious human resource consultants, inflated payments through affiliated vendors, fraudulent transactions to evade tax, and forgery. Madhuri, formerly the head of controls at BharatPe, was terminated in 2022 following a forensic audit that uncovered irregularities. Subsequently, Grover resigned as CEO in March 2022.