New Delhi: Ashneer Grover, co-founder and managing director of BharatPe, has failed to secure interim relief from the Singapore International Arbitration Center (SIAC) which has allowed an investigation against him on alleged financial irregularities and governance lapses at the company, the PTI reported quoting sources .
Grover, who last month went on a-month leave of following absence of using abusive language against Kotak Mahindra Bank staff and fraudulent practices, had filed an arbitration plea with the SIAC claiming the fintech firm’s probe against him was illegal.
However, according to sources, the emergency arbitrator (EA) has, however, rejected all the five grounds of his appeal and denied a single relief.
Grover could not be immediately reached for comments and BharatPe declined to comment on the matter as it was sub judice.
Excerpts of the order passed on February 25 said that Grover had not established any valid right under the shareholder agreement (SHA) or general law for such relief.
Grover had pleaded before the arbitrator that the preliminary investigation was invalid because it was in violation of shareholder agreement and articles of association, and BharatPe has no authority to conduct such an investigation.
He had termed all appointments for the independent audit of the company’s internal processes and systems as bad in law and had also alleged that the members of the committee reviewing governance processes, CEO Suhail Sameer and the company’s general counsel Sumeet Singh, seemed to be biased.
The co-founder and MD of BharatPe said that the appointment of Suhail Sameer as a director be kept in abeyance, and he be restrained from discharging any functions as director of the company.
However, sources said EA rejected all the five grounds of relief.
According to the EA, Grover’s claim did not seem reliable or credible because until week back both Suhail and Sumeet were among the best employees and everything was great about them. Also, everything the company has done is as per law and governance norms so there is no need to change anything, the EA noted, outrightly rejecting all contentions and giving no relief to Grover.
Now, Grover can challenge the arbitrator’s order before the Delhi High Court, sources said.
According to reports, Grover is represented by Karanjawala & Co., while senior counsel Abhishek Singhvi represented BharatPe.
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