Ashneer Grover Urges RBI To Probe BharatPe Chairman Rajnish Kumar

Former Managing Director of BharatPe, Ashneer Grover, has intensified his battle against the fintech giant, directing fresh allegations towards its board chairman, Rajnish Kumar. In a recent development, Grover has penned a letter to the Reserve Bank of India (RBI), urging an investigation into Kumar's actions.

The letter, dated March 9, seen by The Economic Times, alleges that Kumar may have acquired equity shares worth hundreds of crores since joining BharatPe's board. Grover also claims that Kumar's salary surged to INR 1.5 Cr annually, a substantial increase from his initial fees upon joining in 2021.

In response, a BharatPe spokesperson dismissed these claims as baseless, labeling them as desperate attempts to tarnish the company's reputation. The spokesperson affirmed the company's commitment to pursuing legal action against Grover.

Furthermore, Grover's letter accuses BharatPe's board, investors, and management of fraudulently handling the company's shares and misrepresenting facts to the RBI regarding share ownership.

One key allegation revolves around the "warehousing" of shares belonging to co-founder Bhavik Koladiya, who has a history of conviction in the US for credit card fraud. The letter questions whether the RBI would have approved BharatPe's acquisition plans had Koladiya's involvement been disclosed.

Grover's missive also calls for the blacklisting of BharatPe's board and the revocation of its licenses if the allegations are substantiated.

This development follows Grover's previous letter to the RBI on March 6, marking a growing rift between the fintech behemoth and its former MD.

While BharatPe continues to attract substantial investments, with over $650 Mn raised to date, these allegations cast a shadow over its financial performance. Despite a significant rise in consolidated operating revenue, the fintech unicorn reported a widened net loss in FY23, signaling potential challenges ahead.