The Economic Offences Wing (EOW) of the Delhi Police has lodged a First Information Report (FIR) against former BharatPe co-founder, Ashneer Grover, his wife, Madhuri Jain Grover, and other family members for allegedly committing fraud amounting to INR 81 crores. BharatPe, a leading fintech unicorn, filed a complaint against Mr. Grover and his family, alleging that they caused damages worth INR 81.3 crores through fraudulent activities.
The FIR, which has been reviewed by PTI, states that Mr. Grover and his family members were involved in illegitimate payments to bogus human resource consultants, inflated and undue payments through passthrough vendors that were connected to the accused, sham transactions in input tax credit, payment of penalties to GST authorities, illegal payment to travel agencies, forged invoices by Madhuri Jain, and destruction of evidence. The FIR has been filed under eight sections of the Indian Penal Code, including Section 406 that deals with criminal breach of trust, Section 420 that deals with cheating and dishonesty, and Sections 467 and 468 that deal with forgery.If found guilty, Mr. Grover, Madhuri, and others can face imprisonment ranging from 10 years to life. It is not yet clear whether the accused have been arrested or whether they have responded to the charges against them.
The allegations against Mr. Grover and his family are serious and have caused concern among investors and industry experts. Mr. Grover was a well-known figure in the Indian startup ecosystem and was instrumental in building BharatPe into a leading fintech unicorn. The allegations against him have raised questions about the company’s governance and the due diligence conducted by its investors.
BharatPe has issued a statement saying that it had conducted a thorough investigation into the matter and had found evidence of fraud committed by Mr. Grover and his family. The company has also stated that it will cooperate fully with the investigating authorities to ensure that justice is served.
The allegations against Mr. Grover and his family are not the first instance of fraud in the Indian startup ecosystem. Several high-profile cases of fraud and mismanagement have been reported in recent years, raising concerns about the quality of governance and the due diligence conducted by investors. The Indian government has also taken steps to address these concerns by introducing new regulations and guidelines for startups and investors.
The allegations against Mr. Grover and his family are serious and have raised questions about the governance and due diligence practices of BharatPe and its investors. The outcome of the investigation and legal proceedings will be closely watched by the startup ecosystem and investors. The incident also highlights the need for greater transparency, accountability, and governance in the Indian startup ecosystem to prevent such frauds in the future.