BharatPe co-founder Ashneer Grover resigned as Managing Director and Board Director, minutes after receiving the agenda for the upcoming board meeting that included submission of the Price Waterhouse Coopers (PwC) report regarding his conduct and considering actions based on it.
The Board reserves the right to take action based on the report's findings, the company said.
A source close to the developments said that Grover's 8.5 per cent stake in the company might be clawed back as it is on the board's agenda to deliberate on the issue in the meeting in the evening today.
Sources toldthat Grover mailed his resignation to the board at midnight 12:05 pm, 15 minutes after receiving the agenda of the board meeting which is scheduled on Tuesday late evening. He received the agenda in the mail around 11:50 pm on Monday.
In his resignation addressed to the Board of Directors, Grover said that while they will not find a single act of impropriety against him, "I will not be participating in your charade".
"Since you clearly believe you can run this Company better without me -- I am leaving you with this challenge. Build incrementally even half of the value I created so far -- I am leaving you with three times the funds I've utilised till date," said Grover.
"I hereby resign as the Managing Director of BharatPe, effective immediately. I also resign as a Director of the Board. I will continue as the single largest individual shareholder of the Company," he added.
His resignation comes close on the heels of Singapore International Arbitration Centre (SIAC) rejecting Grover's petition against the company for initiating an investigation against him and BharatPe sacking his wife Madhuri Jain Grover, Head of Controls at the company, over allegations of misappropriation of funds.
Meanwhile, BharatPe issued a statement on Tuesday which says, "the Board reserves the right to take action based on the report's findings."
It seems Grover resigned as the board meeting is going to discuss alleged irregularities by the Grover couple. BharatPe board has roped in professional services firm Alvarez and Marshal (A and M) and PwC to investigate the alleged irregularities by Grover's. PwC has completed its investigation and prepared its report which will be discussed in the board meeting.
People aware of the development said that the company has found certain financial irregularities against Madhuri Jain Grover, wife of Ashneer Grover who was sacked by the company last week.
The company has strong proof of the funds being used for her personal purchases at the start-up. Her stock options have also been cancelled.
On the allegation that she was named in a preliminary investigation by professional services firm Alvarez and Marshal (A and M) that linked her to alleged financial irregularities at the startup, Madhuri said, "Shardul Amarchand Mangaldas and A and M never presented a single document to me when I was called. They did not present any proofs for me to address. Where is the concept of natural justice? I have learned of allegations from the media. A and M has not till date been able to explain how their report leaked."
A Spokesperson of the company toldthat Jain has been terminated in accordance with the terms of her employment agreement.
( With inputs from ANI )
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