Ashneer Grover's family member arrested by Economic Offences Wing in BharatPe case

In a significant development, Deepak Gupta, a family member of Ashneer Grover, former Managing Director and co-founder of BharatPe, has been arrested by the Economic Offences Wing (EOW) of the Delhi Police. Gupta’s arrest is part of an ongoing investigation into the alleged misappropriation of BharatPe’s funds, totalling ₹81 crore, by Grover and his family members.

Details of the Arrest

According to sources, Deepak Gupta, who is married to the sister of Grover’s wife Madhuri Grover, was apprehended on the night of September 19 and is currently being held at Mandir Marg Police Station. Gupta is expected to be produced before the Chief Judicial Magistrate (CJM) at Saket Court, where the police will seek a remand for further questioning. This arrest marks the latest step in the probe against Gupta and other key individuals in Grover’s circle.

Madhuri Grover, the wife of Ashneer Grover, previously served as BharatPe’s Head of Controls but was terminated amid allegations of misconduct. Gupta’s arrest comes months after BharatPe had filed a criminal complaint against five individuals, including Ashneer Grover, Madhuri Grover, and Gupta, along with Madhuri’s brother Shwetank Jain and father-in-law Suresh Jain. The company alleges the individuals caused losses to BharatPe through financial fraud.

BharatPe’s Allegations

The case traces back to a complaint lodged by BharatPe in December 2022, accusing Grover and his family members of orchestrating a scheme to defraud the fintech company. The EOW registered an FIR in May 2023 against Grover, his wife, and close family members for misappropriating ₹81.3 crore through a series of illegal transactions.

BharatPe alleges that illegitimate payments were made to non-existent human resource consultants and pass-through vendors associated with the accused. The company claims that these payments were part of a wider scheme to siphon funds via fake invoices, forged documents, and sham transactions related to input tax credit (ITC). BharatPe also accused the family of making illegal payments to travel agencies and tampering with evidence in a bid to cover up their wrongdoings.

Previous Arrests in the Case

This is not the first arrest in the high-profile fraud case. Last month, Amit Kumar Bansal was arrested by the EOW. Bansal, allegedly linked to one of the non-existing firms that had received ₹72 crore in payments from BharatPe’s directors between 2019 and 2021, is accused of facilitating these illegal transactions. His arrest marked the first major breakthrough in the investigation, which continues to evolve with the arrest of Deepak Gupta.

The Grover Family’s Legal Battles

The legal troubles for Ashneer Grover and his family began when BharatPe filed its criminal complaint against the former MD and his family members. Grover and Madhuri Grover have denied the allegations, calling them baseless, but the EOW’s ongoing investigation has yielded significant evidence of financial wrongdoing.

The fintech company claims that the alleged fraud led to inflated and undue payments being made, which were facilitated through pass-through vendors closely linked to Grover and his family. In addition, BharatPe argues that the family manipulated GST invoices and made illegal payments to fake HR consultants to embezzle funds.

Next Steps in the Investigation

With Gupta’s arrest, the investigation into the alleged financial misdeeds involving Ashneer Grover and his family is likely to intensify. The EOW is expected to seek additional remands and may focus on uncovering further evidence that could lead to more arrests. The police will aim to trace the flow of funds, understand the full extent of the alleged financial irregularities, and determine whether any more individuals are involved in the fraudulent transactions.

Given the high profile of this case and its far-reaching implications for BharatPe, this arrest underscores the seriousness of the charges brought against Grover and his associates. As more details emerge, the fintech industry will be closely watching how this case unfolds and its potential impact on governance standards within the sector.