New Delhi, India:
Ashneer Grover, co-founder and former managing director of BharatPe, has raised serious concerns about the company’s shareholding practices. Specifically, in a letter addressed to Reserve Bank of India (RBI) Governor Shaktikanta Das, Grover alleges that BharatPe intentionally deceived the regulator by reintroducing Bhavik Koladiya to the company’s cap table. Consequently, these allegations have sparked significant scrutiny of the company’s internal operations.
The Allegations
- BharatPe’s Shareholding Practices: Grover urges the RBI to investigate the shareholding practices of the Peak XV-backed company. BharatPe, a joint-venture partner in Unity Small Finance Bank with the Centrum Group, has come under scrutiny.
- Reintroduction of Bhavik Koladiya: Grover claims that BharatPe purposefully “defrauded” the regulator by rehiring Koladiya, who had previously been found guilty of wire fraud in the United States. This action, Grover contends, constitutes deliberate “fraud” on the part of BharatPe.
- Warehousing of Shares: The investigation seeks to determine whether BharatPe’s board and investors “warehoused” Koladiya’s shares for a specific period, only to bring him back once the necessary approvals were obtained from the central bank. Warehousing refers to accumulating shares over time before acquiring a significant stake in a company.
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Critical Questions
- Unity Small Finance Bank Approval: Grover questions whether Bhavik Koladiya’s presence would have affected approval for BharatPe’s 49% stake in Unity Small Finance Bank.
- Liquiloans Acquisition: Additionally, Grover asks if Koladiya’s inclusion in BharatPe’s cap table during the license application process would have impacted the regulator’s decision to allow BharatPe to acquire a controlling stake in the non-banking finance company Liquiloans.
- In-Principle Approval: Notably, BharatPe has also received in-principle approval from the regulator for its payments aggregator business through its wholly owned subsidiary, Resilient Payments.
Shashvat Nakrani’s Share Transfer
In the financial year 2022–23, the other co-founder, Shashvat Nakrani, reportedly transferred 11.7% of shares (equivalent to approximately Rs 600 crore) to Koladiya for free, as documented in the company’s annual reports.
BharatPe’s Response
A representative for BharatPe claims that the business, which is led by Rajnish Kumar, has an excellent Board including independent directors.
resources:- timesofindia