Ashneer Grover Petitions NCLT to be Reinstated as MD of BharatPe.

Former managing director of BharatPe Ashneer Grover has filed a complaint with the National Company Law Tribunal (NCLT) in Delhi, claiming that the business was mismanaged and subject to oppression.

When the matter was scheduled for hearing on December 6, his attorney requested more time to address the tribunal regarding maintainability. The next hearing is scheduled for January 11.

Grover has filed a plea against Resilient Innovations, the holding company of BharatPe, and 11 of its directors, including Rajnish Kumar, John Bernard Weinstein, and Shashvat Nakrani, according to the document that Moneycontrol reviewed. The plea claims that Grover was fired from the company in a “arbitrary manner in excess of powers in order to illegally and without complying with law clawback his restrictive shares.”

In his plea, Grover claims that the company’s board of directors’ arbitrary behavior is evidenced by their decision to send him on leave last year for a “fabricated issue that had nothing to do with the company.” The argument further claims that the departure of several important employees, including the company’s founder and CEO, is proof of the oppression and poor management of the business. The plea claims that the company has suffered enormous losses as a result of the board of directors’ actions.

Grover, citing numerous examples of this, has requested that the NCLT

  1. To declare the board of directors’ actions to be oppressive; 2. To declare void any management change made to the company by changing the board of directors.
  2. Assign the Ministry of Corporate Affairs to oversee an audit of BharatPe
  3. To return any newly acquired shares or ESOPs since Grover’s departure in March 2023.
  4. Restore Grover to the position of MD and revoke Madhuri Jain’s dismissal. 5. Eliminate board members appointed subsequent to Grover’s resignation in March 2023.
  5. To keep his restricted company shares at the buyback price the company offers.

Grover has requested that NCLT impose temporary orders maintaining the status quo in the company’s operations and appointing two of his representatives to the board.

The Companies Act of 2013’s Sections 241 and 242 are the basis for the plea. If “the affairs of the company have been or are being conducted in a manner prejudicial to public interest or in a manner prejudicial,” a member of the company may file an NCLT motion pursuant to Section 241. The tribunal’s authority is covered in Section 242.

The four-year-old company has been embroiled in controversy since the beginning of 2022 after its founder, Ashneer Grover, was accused of threatening a Kotak Group employee and using inappropriate language because he and his wife, Madhuri Jain Grover, failed to secure funding and allocation for the Nykaa IPO.

Grover, the company’s MD, resigned and took a voluntary leave of absence, but his wife, Madhuri Jain, the former head of controls, was fired due to accusations of embezzlement.

Grover’s appeal to halt an internal investigation was turned down by the SIAC in February of last year for a number of reasons.

Grover and the BharatPe founders are engaged in a legal battle in the Delhi High Court.

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