BharatPe, the fintech giant, has received a recent notice from the Ministry of Corporate Affairs (MCA), requesting detailed information about its operations and legal actions against co-founder Ashneer Grover, according to recent reports. The notice also pertains to queries regarding findings in a status report submitted by the Delhi Police’s Economic Offences Wing (EOW), which investigated allegations of financial irregularities within the company. Additionally, the Registrar of Companies has sought further information through correspondence to the company.
BharatPe emphasized that the requested information is part of the ongoing inquiry referenced in its audited results and affirmed its cooperation with the authorities. The notice to BharatPe falls under Section 206 of the Companies Act, which mandates companies to furnish information requested by the registrar and grants the ministry authority to inspect company books or initiate an inquiry.
BharatPe has been embroiled in legal disputes with co-founder Ashneer Grover and his wife, Madhuri Jain. The company filed a civil suit against Grover and his family members in December 2022, seeking damages for alleged embezzlement of funds.
Last year, the Economic Offences Wing (EOW) filed an FIR against Grover and others for alleged fraud following a complaint by BharatPe. Grover and his wife approached the Delhi High Court seeking the quashing of a Lookout Circular issued against them in connection with the investigation. The court has directed the authorities to consider their application for permission to travel abroad.
This development occurs amidst regulatory scrutiny of fintech firms concerning compliance and internal governance. The Reserve Bank of India (RBI) recently directed Paytm’s payments bank unit to cease accepting deposits and providing banking services after February 29, citing violations of various norms, including KYC guidelines.