Fintech Unicorn Company BharatPe, again took place in the headlines when it received the Ministry of Corporate Affairs (MCA)’s notice under section 206 of the Companies Act, 2013 regarding the proceedings against founder Ashneer Grover. MCA has called upon the company to submit evidence for civil & criminal complaints initiated by the Fintech against Ashneer.
The company stated that they are cooperating with authorities and providing necessary information as part of an ongoing inquiry since December 2022.
What was Controversy
The controversy took place in public attention in 2022 when Grover was accused of using abusive language and threatening behavior towards a Kotak-Mahindra Bank employee. Grover stepped down as managing director, and a forensic audit was also initiated against him.
What MCA is Looking for
The recent MCA notice asks for the details about the operations and actions taken against Grover along with questions about conclusions from the status report filed by the Delhi Police’s Economic Offences Wing, the company received and acknowledged the same later.
The MCA notice was issued under Section 206 of the Companies Act, 2013 which gives power to the central government to inspect the books of accounts and call for an investigation into the affairs of a company.
The suit was initiated by BharatPe in December 2022, against the founder Ashneer and his wife, seeking damages and an injunction to prevent disclosure of confidential information along with initiating arbitration to recover Ashneer’s restricted shares.
The fintech players, now-a-days, are facing intense scrutiny from the government and other regulatory authorities, be it BharatPe, Paytm or PaisaBazaar – this reflects the importance of governance amongst the corporates and state’s stance in the Public Interest.
