The Economic Offences Wing (EOW) of the Delhi Police has arrested Grover’s brother-in-law, Deepak Gupta, adding a fresh twist to the current legal struggle between BharatPe and its expelled co-founder Ashneer Grover. The probe into an alleged ₹81 crore fraud involving Grover and his family, which has shocked the massive fintech company, includes the current arrest.
Credits: India Today
This is a detailed examination of the latest events, the accusations, and the possible effects on BharatPe’s operations and its previous executives.
On September 19, 2024, Deepak Gupta, the sister of Madhuri Grover, was arrested, marking a major development in the continuing judicial processes. Gupta is charged with participating in the embezzlement of money while Ashneer Grover was employed by BharatPe. He is reportedly being held at the Mandir Marg Police Station and is scheduled to appear in court in Saket, where the police will likely request a detention so they may question him further, according to sources.
Following months of accusations and inquiries regarding the activities of Ashneer Grover’s family with BharatPe, Gupta was arrested. In December 2022, BharatPe lodged a criminal case against five persons, namely Ashneer Grover, his spouse Madhuri Jain, and relatives such as Madhuri’s brother Shwetank Jain, Ashneer’s father-in-law Suresh Jain, and Deepak Gupta.
The Economic Offences Wing has been investigating the alleged ₹81.3 crore fraud since BharatPe’s complaint. The FIR, registered in May 2023, outlines serious accusations against Ashneer Grover and his family. BharatPe claims that Grover, along with his family members, orchestrated a scheme involving bogus human-resource consultants, inflated vendor payments, fake invoices, and sham transactions to input-tax credit, which drained the company’s finances.
In addition to Deepak Gupta’s arrest, the EOW had previously apprehended Amit Kumar Bansal, another key figure linked to the non-existent companies that allegedly received payments worth ₹72 crore. These payments were allegedly funneled between 2019 and 2021 under the leadership of Ashneer Grover.
The accusations and arrests may have a long-term effect on BharatPe’s commercial standing. BharatPe, one of the top fintech unicorns in India, has expanded dramatically since its establishment in 2018. But the company’s quick ascent has been overshadowed by the controversy surrounding Grover’s leadership, which was followed by a court dispute and allegations of financial mismanagement.
Both consumers and investors are keeping a careful eye on these developments. Despite BharatPe’s distancing from Grover and his family and its claims to be cleaning up internal systems, the company’s market standing may suffer from the ongoing legal issues. Fintech companies rely heavily on trust, and now that BharatPe’s name has been associated with fraud accusations, it may find it difficult to maintain investor faith and consumer loyalty.
Once praised for his direct and assertive leadership style, Ashneer Grover is currently under criticism for the same traits. His legacy has been tarnished by the court lawsuit, which claims he and his family engaged in fraud schemes against the corporation he helped build.
Grover has positioned himself as a victim of corporate politics and refuted all accusations, maintaining his innocence. However, his defense is made more difficult by the arrests of others who are close to him, such as Deepak Gupta.
Grover and his family could be subject to harsh legal repercussions, such as large fines and lengthy jail terms, if they are found guilty. Grover may find it difficult to launch or make investments as a result of the impact from this case, which could also seriously harm his reputation in the startup community.
Although Deepak Gupta’s arrest represents a significant advancement in the investigation, the case is far from closed. While the EOW looks into the claims further, there may be more arrests and judicial actions. Further revelations regarding the roles of other accused people such as Ashneer Grover and Madhuri Jain may follow Gupta’s arrest.
BharatPe is attempting to move past this scandal for the time being, but the matter is likely to stay in the news for several months to come, acting as a warning to others in India’s rapidly expanding fintech industry.
