Ashneer Grover to RBI: BharatPe has deliberately “defrauded” you

Ashneer Grover

, co-founder and former managing director of

BharatPe

, has written to the

Reserve Bank of India

(

RBI

), urging the banking regulator to initiate an investigation into the shareholding practices of the Peak XV-backed company. BharatPe, which is a joint-venture partner in Unity Small Finance Bank with the Centrum group, has come under scrutiny.
In a letter dated March 6, addressed to RBI Governor Shaktikanta Das, Grover alleges that BharatPe intentionally deceived the regulator by reintroducing Bhavik Koladiya to the company’s cap table.

Grover said in the letter that BharatPe has deliberately “defrauded” the regulator by bringing back Koladiya as he was already convicted of wire fraud in the US. Grover contends that this action constitutes deliberate “fraud” on the part of BharatPe.
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, in this context, refers to accumulating shares over time before acquiring a significant stake in a company.
Grover has important question for RBI

Grover also poses a critical question for RBI in the letter. He reportedly asked if Koladiya was part of BharatPe’s cap table during the license application process, would the regulator have approved BharatPe’s 49% stake in Unity Small Finance Bank or allowed it to acquire a controlling stake in the non-banking finance company Liquiloans? Notably, BharatPe has also received in-principle approval from the regulator for its payments aggregator business through its wholly owned subsidiary, Resilient Payments.

Furthermore, Grover highlights that in the financial year 2022-23, the other co-founder, Shashvat Nakrani, transferred shares to Koladiya. 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.
In response to these allegations, a BharatPe spokesperson asserts that the company boasts a stellar Board with independent directors, operating under the guidance of Rajnish Kumar. The situation remains under scrutiny, and the outcome of the RBI investigation will shed light on the integrity of BharatPe’s shareholding practices