BharatPe on September 30 announced that the firm has arrived at a definitive agreement with its former co-founder Ashneer Grover following which he won’t be associated with the firm in any capacity.

“Mr. Grover will not be associated with BharatPe in any capacity nor be a part of the shareholding of the company. Certain shares of Mr. Grover shall be transferred to the Resilient Growth Trust for the benefit of the Company and his remaining shares will be managed by his family trust,” the firm said in a statement.

BharatPe said that both parties have decided not to pursue the cases filed. We wish Mr. Grover well. “BharatPe continues to focus on delivering industry leading solutions to its merchants and customers driving growth with profitability.”

The development comes after legal tussles between BharatPe and Grover with the company accusing the former founder and his family members of siphoning funds through various fraudulent schemes between 2019 and 2021.
These include making illegitimate payments to bogus HR consultants, inflating payments to vendors connected to the accused, fabricating transactions for input-tax credit, and making illegal payments to travel agencies. The company also claims that invoices were forged by Shwetank Jain and that evidence was destroyed in an attempt to cover up the fraud.

The investigation into BharatPe’s financial irregularities began following Grover’s controversial exit from the company in 2022. Madhuri Jain Grover, Ashneer’s wife and former Head of Controls at BharatPe, was also fired as part of the fallout.

Last month, the EOW made its first arrest in the case, detaining Amit Kumar Bansal, who was allegedly involved in managing non-existent firms that received payments of ₹72 crore from BharatPe’s directors.

Earlier in September, the Economic Offences Wing (EOW) of Delhi Police had arrested Deepak Gupta, the former Head of Procurement at Resilient Innovation, the parent company of BharatPe, in connection with an alleged misappropriation of company funds.

Gupta, who is married to the sister of Madhuri Grover (wife of former BharatPe managing director Ashneer Grover), was taken into custody on the evening of September 19.

Gupta’s arrest was part of a larger probe into the alleged ₹81 crore fraud at the fintech unicorn. The company filed a criminal complaint in December 2022 against five individuals, including Ashneer Grover, his wife Madhuri Jain Grover, her brother Shwetank Jain, father Suresh Jain, and Deepak Gupta. The EOW formally registered an FIR in May 2023, naming these individuals as accused.