BharatPe co-founder Ashneer Grover files plea in Singapore; settlement option still on

Grover will likely seek indemnity from any future liabilities while selling his stake back to the company. Grover, who owns around 9.5 per cent in BharatPe, had reportedly asked the board to buy out his shareholding for Rs 4,000 crore in cash. Grover is also exploring options with external investors to buy out his stake, according to multiple news reports.

In his pleas before the Singapore International Arbitration Centre (SIAC), Grover said the “review committee” formed by the BharatPe board earlier this month, to look into the allegations of financial fraud, was violative of the terms approved under the shareholder’s agreement (SHA).

FE has reviewed a copy of the plea document submitted before the arbitration court.

“The Review Committee which is constituted in violation of the terms of the SHA, continues to act to the detriment of the Claimant. The Claimant stands to suffer extreme prejudice if the operation of the Review Committee is not prevented and stands to suffer irreparable harm and damage,” the plea before the SIAC court read.

The plea also quoted various clauses under the SHA and the articles of association (AoA) between Grover and the company as the primary basis to strike down the independent committee appointed by the board. In addition, it sought an order directing the BharatPe board “not to rely on the reports delivered by the Review Committee in its current form and constitution…”.

Grover also sought the SIAC’s intervention to keep in abeyance the appointment of Suhail Sameer as director asking he be restrained from discharging any functions as director of the company, pending the arbitration. Grover’s decision to move the Singapore court comes after a fight ensued between him and the board. FE