Faced with governance problems, BharatPe orders an independent internal audit
Amid growing concerns over governance issues, fintech company BharatPe announced on Saturday that an independent audit of its internal processes and systems was underway.
The development comes just days after its founder Ashneer Grover took voluntary leave until the end of March. Mr Grover had made the decision to go on leave on December 19, after an audio clip revealed a huge fight between him and Kotak Mahindra bank.
Meanwhile, Mr Grover’s wife, Madhuri Jain Grover – who also works with the company – has also taken time off, the agencies reported.
According to sources, Madhuri – who is the head of controls – has gone on leave, and with the company undertaking an independent audit, there may be governance-related issues at BharatPe which could now come to light, according to the sources. agency reports. BharatPe did not comment on Madhuri’s exit.
“BharatPe’s Board of Directors is committed to the highest standards of corporate governance in the business and conducts an independent audit of the company’s internal processes and systems,” the company said in a statement. a statement.
BharatPe, through his law firm, Shardul Amarchand Mangaldas, has appointed Alvarez and Marsal, a leading management consultant and risk advisory firm to advise the board on its recommendations, according to the communicated.
“The board strongly believes in protecting the interests of all stakeholders, including customers, employees and partners,” he added, while asking the media to avoid speculation until audit findings are complete.
According to Reuters, the audit will assess whether senior executives at BharatPe are making appropriate internal disclosures about personal investments and verifying conflicts, leading to a new code of conduct.
BharatPe has come under intense scrutiny from investors and the media after co-founder Ashneer Grover sought damages from Uday Kotak, director of Kotak Mahindra Bank, alleging the bank had refused funding for the project. a personal investment, Reuters reported.
Kotak Mahindra Bank in turn alleged that Mr Grover used “foul” and threatening language towards his employees and reserved the right to take appropriate legal action against him, according to a legal document seen by Reuters.