BharatPe founder Ashneer Grover siphoned off money, Indian startup says

The Indian startup said that the co-founder and his relatives had misappropriation of company funds.

The Grover family and their relatives created fake vendors and grossly abused company expense accounts in order to enrich themselves.

The Board of the startup that helps millions of merchants accept money digitally and provides them with credit directed a thorough review of the company's internal controls in January this year after receiving complaints.

An audio clip of a man making threats and abusive statements over a phone call to a Kotak Bank representative over not getting financing to buy shares in fashion e-commerce was posted on the social networking site. The board conducted an investigation after the clip went viral on social media.

According to two people with knowledge of the matter, several board members and investors have been scheming to remove Grover from the startup for more than a year.

In a televised interview on Tuesday, the host of Shark Tank India threatened to make public the names of investors and board members if the startup continues to hurt his reputation. He said his investors are removed from reality and treat the founders as slaves.

The startup said it had taken objection to Mr. Grover spinning lies and making baseless allegations.

The recent events at the startup have been the most bizarre episode he has ever witnessed in the Indian startup scene, according to an investor of the startup. He wanted anonymity talking about private matters.

The Board will not allow the conduct of the Grover family to tarnish the reputation of the company. As a result of his misdeeds, Mr. Grover is no longer an employee, a founder, or a director of the company.

The appointment of an audit committee, an internal auditor, and the implementation of other key internal controls are some of the steps the Board is taking to strengthen the company's corporate governance. The success of the company is the result of a large team of dedicated and talented professionals. The company is marking the beginning of a new chapter in its success, one grounded in trust and integrity, and we are excited to embark upon this next leg of our journey.