Why are BharatPe founders now suing Ashneer Grover
BharatPe founders are not done throwing lawsuits at Ashneer Grover, who had a bitter exit from the fintech major. In January this year, BharatePe co-founder Bhavik Koladiya took Grover to court. Barely two months after that, Shahsvat Nakrani, another co-founder of the company, has now moved the court against the former Shark Tank judge over unpaid shares.
Why does this story matter?
- The BaharatPe-Ashneer Grover saga refuses to go away. The animosity between the company and Grover began at the beginning of last year.
- It took a turn for the worst after his wife was fired, and he was forced to resign as the managing director. The corporate battle has now turned into a legal one with various dimensions.
Nakrani alleges Grover has not paid for the shares purchased
BharatPe was founded by Nakrani and Koladiya in 2018, with each owning 50% of the company. Grover joined the company as a co-founder in the same year. He purchased 2,447 shares from Nakrani and 745 from Koladiya. In the new suit, Nakrani alleges Grover is yet to pay for the shares he purchased and wants them back.
Koladiya sued Grover first
While Nakrani is still at BharatPe, Koladiya is not a part of the company. It was, however, Koladiya who first sued Grover. Koladiya is suing to reclaim his shares. He had to let go of his shares in the company due to his past conviction for credit card fraud in the US. People usually pledge such shareholding to existing stakeholders with a call-option agreement.
Grover did not honor the agreement: Koladiya
According to Koladiya, he triggered the agreement to get his pledged shares back in 2018. However, while Nakrani honored the agreement, Grover refused to do so, Koladiya said. Suhail Sameer, the former CEO of BharatPe, had earlier said he was not aware of the existence of such an agreement. Grover and Sameer had a fallout, which resulted in a bitter war of words.
Grover may lose his stake if claims go through
Grover currently owns about an 8.5% stake in BharatePe. Out of that, 3.09% was claimed by Koladiya, and 1.4% was not vested. If Nakrani's claim goes through, Grover will be left without anything in the company. Therefore, the current lawsuits by the two co-founders can be looked at from that angle - an attempt to rid Grover of any claims in the company.
Grover reacted in his typical fashion
BharatPe has filed a criminal lawsuit against Grover
The two suits by BharatPe are in addition to the criminal suit filed by BharatPe against Grover and his wife. The company is seeking up to Rs. 88.67 crore in damages for alleged cheating and embezzlement of funds. In a recent hearing of the case, BharatPe said there is no possibility of settlement between both parties.
