Ashneer Grover says Rajnish Kumar is involved in BharatPe Fraud and requests RBI to do investigation

Former managing director of BharatPe, Ashneer Grover, has reportedly written a letter to the Reserve Bank of India (RBI) calling for an investigation into the chairman of BharatPe’s board, Rajnish Kumar.
In the letter, Grover alleges that Kumar has acquired equity shares worth hundreds of crores since joining the company’s board and that Kumar’s salary was increased to INR 1.5 crore per year, more than three times his initial fees.
BharatPe, in response to these allegations, has called them baseless and without merit, stating that they are part of a desperate attempt to malign the company. BharatPe also mentioned that they are pursuing civil and criminal action against Grover and have full faith in the judicial system.
Accusations of Fraud and Lying to the RBI
In his letter, Grover also accused the company’s board, investors, and management of committing fraud and lying to the RBI regarding the ultimate beneficial ownership of the company’s shares.
He claimed that the board and investors “warehoused” the shares of co-founder Bhavik Koladiya for a specific period of time to bring him back into the company after obtaining approvals from the RBI.
Grover also raised questions about whether the RBI would have approved BharatPe’s acquisition of a stake in Unity Small Finance Bank or a controlling stake in NBFC Liquiloans if Koladiya was part of the company’s cap table during the license application process.
Request for Investigation and Consequences
Grover urged the RBI to investigate the allegations and requested the blacklisting of BharatPe’s board of directors. He also sought the cancellation of licenses owned by BharatPe if the charges against the company are proven.
Grover emphasized the need for the RBI to investigate BharatPe, regardless of the ongoing legal battles between himself and the company. He mentioned that the Ministry of Corporate Affairs is already conducting a probe into BharatPe.
Background and Financial Performance of BharatPe
BharatPe is a fintech startup that has raised over $650 million in funding from investors such as Peak XV Partners, Ribbit Capital, Insight Partners, and Steadview Capital. In FY23, the company posted a net loss of INR 926.9 crore, which widened by 12% compared to the previous year. However, its consolidated operating revenue increased by 125% YoY, crossing the INR 1,000 crore mark.
Conclusion
Ashneer Grover, the former managing director of BharatPe, has written a letter to the RBI accusing the chairman of BharatPe’s board, Rajnish Kumar, of acquiring equity shares and receiving an increased salary. Grover also accused the company’s board, investors, and management of fraud and lying to the RBI. BharatPe has denied these allegations and stated that they are pursuing legal action against Grover. The RBI has been urged to investigate the matter, and Grover has requested the blacklisting of BharatPe’s board of directors and the cancellation of licenses if the charges are proven.