One of India's leading fintech firms, Bloomberg has begun legal proceedings against its co-founder and his wife for embezzling and misusing company money, in a case that could mark the first case of its kind in the nation s thriving startup ecosystem.
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According to a civil lawsuit filed Wednesday in the Delhi High Court, the company sued Ashneer Grover and his wife, Madhuri Jain, for damages worth about 880 million rupees $10.7 million. BharatPe has also moved the court to restrain Grover from making derogatory public statements about the company.
Grover and Jain are charged with 17 additional criminal charges in a separate complaint filed by BharatPe with the economic offenses wing of the Delhi police. Grover faces a 10 year prison sentence if convicted.
The complaint names Jain's father, brother and brother-in- law, according to a copy seen by Bloomberg. They are accused of making illegitimate payments of 760 million rupees to fake HR consultants, as well as making inflated payments worth 62.3 million rupees.
There was a complaint about the possible embezzlement of 717.6 million rupees and dishonest and illegal payments to travel agencies. Jain is accused of extortion of justice by reimbursement of forged invoices and destruction of evidence.
In March when the 39-year-old entrepreneur was forced to resign, Grover and other leaders at BharatPe, which is backed by global investors including Sequoia Capital and Tiger Global Management. The company s C-suite accused Grover of using funds to bankroll a lavish lifestyle, allegations he has vehemently denied.
Ashneer Grover, Madhuri Jain and their family didn't respond to emailed questions and text messages seeking comment on the cases against them. The Delhi High Court has given Ashneer Grover's legal team two weeks to respond.
The public showdown between BharatPe and Grover has cast a cloud over India's dynamic startup economy, where venture money has helped spur the rise of an ambitious new class of millionaires eager to displace the old guard.
Grover, who co-founded BharatPe in 2018, helped transform the company into a unicorn, going toe-to-toe with older rivals such as Paytm and Walmart Inc. owned PhonePe. The tech company has been hugely successful in offering digital payment services across India.
He was also the driver of growth and a master marketer, making public appearances in snazzy jackets and landing zingers on fresh-faced entrepreneurs as a shark investor on the first Indian edition of Shark Tank. Grover doesn't have a place in the line-up for the upcoming second season.
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