The internet is ablaze, and for once, it’s not because of a viral dance trend or a celebrity breakup. The India’s Got Latent controversy involving Samay Raina and Ranveer Allahbadia has sparked a firestorm of debates, legal battles, and moral outrage. What started as a seemingly fun comedy show has snowballed into a full-blown cultural and legal crisis. Let’s unpack this drama, piece by piece, and understand why this controversy isn’t your ticket to a viral moment. Instead, it’s a reflection of the tightrope walk between comedy, freedom of expression, and societal norms.
The Spark That Lit the Fire
The controversy erupted during an episode of India’s Got Latent, a YouTube comedy show hosted by Samay Raina. Ranveer Allahbadia, better known as BeerBiceps, posed a now-infamous question to a contestant: “Would you rather watch your parents have sex every day for the rest of your life, or join in once and stop it forever?” The question, intended as a dark humour punchline, backfired spectacularly.
The clip went viral, and the backlash was immediate. Social media users, politicians, and even the National Commission for Women (NCW) condemned the remark as vulgar, obscene, and deeply disrespectful. The outrage wasn’t confined to the joke itself but the platform it was delivered on – a show watched by millions, including young audiences.
The Fallout: Legal Battles and Public Outrage
The backlash wasn’t limited to online criticism. Multiple FIRs were filed against Ranveer Allahbadia, Samay Raina, and other panelists, including Ashish Chanchlani and Apoorva Makhija (The Rebel Kid). The complaints accused them of promoting obscenity and violating public decency. Assam Chief Minister Himanta Biswa Sarma even weighed in, stating that the remarks were “sexually explicit” and warranted legal action.
The Indian government stepped in, issuing a notice to YouTube to remove the controversial episode under Section 69A of the IT Act. YouTube complied, and the episode was taken down, but the damage was already done.
Ranveer Allahbadia issued a public apology, admitting that his comment was “inappropriate and not even funny.” He acknowledged that comedy wasn’t his forte and expressed regret for the hurt caused. Samay Raina, on the other hand, deleted all episodes of India’s Got Latent from his YouTube channel, stating that the backlash was “too much to handle”.
The Legal Drama: Supreme Court, Summons, and Stay Orders
The controversy took a legal turn when Ranveer Allahbadia approached the Supreme Court to consolidate multiple FIRs filed against him. Represented by Abhinav Chandrachud, son of former Chief Justice of India DY Chandrachud, Allahbadia sought protection from arrest and a stay on further FIRs. The Supreme Court granted interim relief, staying his arrest but barring him from hosting any shows until further notice.
Meanwhile, the National Commission for Women (NCW) summoned Allahbadia, Raina, and others for a hearing. However, many of the summoned individuals, including Raina and Apoorva Makhija, failed to appear, citing prior commitments and safety concerns. The hearings have been rescheduled for March.
The Broader Debate: Comedy vs. Censorship
This controversy has reignited the age-old debate about the limits of comedy and freedom of expression. Supporters argue that comedy should push boundaries and challenge societal norms. Rapper Raftaar, for instance, suggested that people often enjoy seeing successful individuals fail, hinting at the schadenfreude surrounding the controversy. On the other hand, critics argue that comedy should not come at the cost of decency and respect. Actor Rajpal Yadav condemned the remarks, stating that “making fun of relationships is not art but nonsense”. Filmmaker Boney Kapoor echoed similar sentiments, emphasising that freedom of speech doesn’t mean one can say anything without consequences.
The Human Cost: Death Threats and Mental Health
Amid the legal and public backlash, Ranveer Allahbadia revealed that he and his family have been receiving death threats. He shared that people have invaded his mother’s clinic, posing as patients, and expressed fear for his safety. Despite the pressure, he vowed to cooperate with authorities and face the consequences of his actions. This aspect of the controversy puts light on the darker side of internet culture, where public outrage often spirals into harassment and threats. It raises important questions about accountability and the disproportionate punishment meted out in the court of public opinion.
The Bigger Picture: What This Means for Content Creators?
The India’s Got Latent controversy is a cautionary tale for content creators. It showcases the need for sensitivity and responsibility, especially when dealing with topics that can offend or harm. At the same time, it uncovers the challenges of operating in a territory where the line between comedy and offense is increasingly blurred. For platforms like YouTube, this incident is a reminder of the need for better content moderation and clearer guidelines. The government’s intervention also raises questions about the role of state regulation in digital content.
A Wake-Up Call for Comedy and Society?
The Samay Raina and Ranveer Allahbadia controversy is a reflection of the complexities of modern comedy, the power of social media, and the underlying norms of Indian society. While the outrage is understandable, it’s also a reminder that comedy, at its best, should provoke thought, not provoke, solely. As the legal battles continue and the debates rage on, one thing is clear: this controversy is a wake-up call for creators, audiences, and regulators alike. It’s a moment to reflect on what we value, what we tolerate, and where we draw the line.
What are your thoughts? Is this a case of comedy gone too far, or is it an overreaction to a harmless joke?
Fact-checking simply means that whatever information is out there is verified or authentic. However, it is noticed that today many journalists or those associated with news channels are spreading the news that isn’t fact-checked to earn a great deal of money.
One such incident that is now all over the media is the arrest of Mohammed Zubair, the co-founder of Alt news. He was arrested on June 27, by Delhi Police over a four year old tweet insulting a deity.
He is the co-founder of Alt news. Mohammed Zubair along with his friend, a former software engineer, Pratik Sinha, started the website to counter fake news, by exposing lies spread by media houses, politicians, celebrities, and users on social media.
Why Was Mohammed Zubair Arrested?
Mohammed Zubair was arrested on accounts for deliberately insulting a god from a particular religion. He posted the tweet in March 2018.
A Twitter user had filed the FIR against Zubair where he tagged the Delhi Police to take action against Zubair. As per the police, the tweet handle showed an image that was taken from the 1983 film Kissi Se Na Kehna and has been repainted with an improper word.
Zubair was arrested under IPC Section 153-A (promoting enmity between different groups) and 295-A (malicious acts to hurt religious sentiments).
His co-partner, Pratik Sinha has said that Zubair has been called in for questioning regarding a case from 2020. He was booked under the Protection of Children from Sexual Offences Act (POSCO), where he allegedly morphed a picture of a minor girl on social media. Reports suggest that he has been arrested for the tweet instead, which he posted four years ago for hurting religious feelings.
The Series of Controversies Associated With Alt News
Since Alt news’ inception, the website has been accused of targeting the Bharatiya Janta Party (BJP). Several fact-checkers have claimed that the website targets more Modi-led governments than other political parties.
Due to his hate speech on social media platforms, Zubair is facing multiple FIRs.
The cases leading to foreign donations
When Zubair was under 14-day judicial custody, the prosecutor revealed that Zubair has accepted various payments through Razorpay from UAE, Pakistan, Singapore, Syria, and Australia.
Being linked to this controversy, Razorpay had clarified on Twitter, “We will continue to hold the highest standard of data security, defend our customers at all times and also continue to abide by the laws and regulations of India.”
The public prosecutor had opposed the bail of Zubair asking for an investigation regarding the foreign donations he has allegedly received. According to the reports, Delhi Police has also accused Alt News parent company Pravada Media of involving in foreign funding and taking money of more than Rs 2 lakhs.
Fact-check: Absolutely lies. Police is linking donations received by Alt News to Zubair. All the money that Alt News receives goes to the organisations bank and not any individuals. The bank statement of Zubair's personal account of which I have a copy debunks this falsehood. pic.twitter.com/esrmEVpTPp
Things got more controversial when Alt News accused Razorpay of sharing their donor data information with the police without their knowledge. To get out of the accusations, Alt News made statements that they have only added Indian Banks who can make donations to them and that foreign credit cards were never listed on Razorpay’s back-end. Thus, claiming that it is not possible for them to receive money from overseas and that these allegations are untrue.
Alt News Statement regarding Razorpay
Tweets from other countries in support of Zubair
Furthermore to these accusations, an analysis report was shared stating that Alt News has received various transactions that show IP addresses coming from outside India. The cities and countries were Bangkok, Singapore, New York, Abu Dhabi, England, and New Jersey among several others. Additionally, the parent company Pravada Media has received a total of Rs 2,31,933.
Other reports are claiming that the Police have summoned new cases against Zubair such as Section 120B (criminal conspiracy) and 201 (destruction of evidence) of the Indian Penal Code and section 35 of the Foreign Contribution Regulation Act.
This comes after it was discovered in a social media analysis of Zubair’s Twitter handle that there were multiple tweets from nations such as the UAE, Kuwait, Bahrain, Pakistan, and other Middle Eastern countries in favour of Zubair opposing his recent arrest.
At the beginning of 2022, Alt news created a Twitter page called ‘Unhate’, to demonstrate documents on hate speeches and other related stories.
Though Alt news has been constantly calling out other news channels for spreading misinformation and false facts, it is quite evident that there many pieces of evidence which speak against the news website.
The fact-checking channel team is very supportive of Zubair and is declaring that his arrest of him is an attack on the kind of work he does.
Alt News Statement regarding the allegations
Pratik Sinha has recently shared in an interview, that how their team is always showing verified facts, and people from the ruling parties are creating fake news to create a false narrative against their channel.
Conclusion
The changing nature of journalism in India has been quite the trend these days. Giving out information is the duty of not just the journalists but as viewers and readers, we also must support what type of journalism should be encouraged. In India, controversies are always linked with journalists, whether for questioning what is right or getting trapped for spreading misinformation.
The incident of Zubair’s arrest has left many in the dark about the misuse of social media, where anything is not entirely true. Several opposition leaders are condemning the arrest of Zubair and blaming the Modi government. All of these cases are hard to justify who is right while keeping in view the shreds of evidence against Zubair.
FAQs
Why was Mohammed Zubair arrested?
Mohammed Zubair was arrested related to a tweet he had posted in 2018.
Who is Mohammed Zubair?
Mohammed Zubair is the co-founder of fact-checking website Alt News.
Actors are the people who belong to some sets of the most famous people on this planet earth. They are the people who are probably the topmost entertainers in the world. They appear in movies and TV shows and are seen by the masses to entertain themselves. Theatres and all the mass production of movies take place in the world as a serious job and it has a lot of potential to drive profits.
In eight out of ten events, these actors act as an influencing personality in creating trends of sorts. Their influence is not just limited to the movies they do and the TV shows that they appear in, but it is more than that. If a movie star is famous and popular, brands throw money to have them in their advertisement. This is due to the power of influence that actors and influencers have in their hands.
There is a famous dialogue that says “With great power, comes great responsibility”, which is completely true. People who have immense influencing powers at their disposal, have to act very responsibly. Actors in this case have to be very careful, because of the kind of influencing power they have, whatever they say, most fans will follow.
A classic example is of actors promoting products that do not follow the ideology that they endorse. A piece of recent news which covered the same event was the Vimal Advertisement. The advertisement created controversy and held some really big names in the industry by necks. This article talks about that advertisement and how the advertisement hurt the sentiments of fans of Akshay Kumar all over India. Read on to know the story that sparked the Vimal ad controversy.
The controversy arose when Akshay Kumar joined hands with Vimal (The brand) to enter into an advertisement for the product that they sell. Akshay Kumar is a very famous advocate of healthy living and this advertisement for Cardamom (Paan masala) is the opposite of his ideology.
This sparked the fans of Akshay Kumar and general people to rant about the actor. Ajay Devgan and Shah rukh khan were also seen in the promo for the advertisement.
Vimal Advertisement
Vimal is a brand that sells Cardamom products. Paan masala is one of their top-selling products and they advertise the same product with many actors. Actors who have high influencing power and have a lot of fan following to their credit. Vimal’s brand ambassador for the most of time has been Ajay Devgan and he is the most recurring face in Vimal’s advertising.
The advertisements of Vimal are very unique and can be separated from the rest in an easy manner. Vimal has also made its own signature move, the Zuban Kesari salute is a constant companion in its advertisement. We see Ajay Devgan salute the Zuban Kesari’s move to foreign lands to promote the paan masala.
In the recent past, Shah Rukh Khan has also been seen in advertisements promoting the product of paan masala. The king khan of Bollywood is said to have a huge fan following and Vimal plans to capitalise on it by offering the role to SRK. Except for some trolls here and there, these advertisements were never a problem until Akshay Kumar stepped in. Let us see why people are outraged by such a little thing.
Akshay Kumar Vimal Controversy
Akshay Kumar is the name that tops the list of healthiest actors in Bollywood and all of India. Even in his fifties, this actor is super active and fit. Not only does he follow a fit routine, but he also encourages and motivates all of India to follow a good healthy routine. He is the brand ambassador of the Fit India mission and an inspiration for many.
The controversy began when he starred in a Vimal Advertisement. Soon after the advertisement started to air, people were agitated by the act of Akshay starring in an advertisement for a tobacco product.
Fans shared old videos of Akshay taking a public pledge of not endorsing tobacco products in future for any amount of money. Fans and others ranted that Akshay Kumar is a hypocrite and does not follow what he preaches. This controversy was a serious hit on the persona of one of the top paid actors in Bollywood.
Akshay Kumar Fans Reactions to Vimal Ad
As Akshay joined Ajay Devgan and Shah Rukh Khan for the advertisement of Vimal’s cardamom products, it started a controversy almost instantly. It is a brand that also sells tobacco products.
As opposed to most reactions to major events in India, this controversy did not split people into two opinions. Most people were against Akshay Kumar endorsing a product of tobacco. There were thousands and thousands of tweets against Akshay, people even made memes of the irony of the events. Not only on Twitter but on Instagram also saw memes and rants of people who were shocked at the hypocrisy of Akshay as an influencing personality.
Akshay Kumar Fans Reaction
For such a big actor like Akshay, this move was not a thoughtful move at all and could take a toll on his credibility and trust in the public. There were tweets that called out Akshay for being such a hypocrite. People called that Akshay just used fitness as a PR device and nothing else.
The co-founder of Monk Entertainment, Viraj Seth twitter “Everyone has a price” in relation to this matter.
Everyone has a price, bro. It can vary. But everyone has a number.
People slammed Akshay for endorsing harmful products and they also took a jab at his healthy routine cover that he uses for PR. In a country like India where actors are more famous than most politicians and have a huge fan base, this act was no less than ugly. But actors are human too, they are often covered with greed and can’t see what the future repercussions will be.
Akshay Kumar’s Apology to Its Fans for the Vimal Ad
The advertisement made a lot of stir among fans and others, people ended up ranting about Akshay Kumar and his career. Not to mention that This was a big blow to the credibility of the actor and how people perceive the actor and his words.
Owing to this, Akshay Kumar responded with a heartfelt letter to his fans and followers. He was apologising in the note that he shared and said that he will use the proceeds from the advertisement for a noble cause.
He explicitly apologised for the association with the brand that promoted tobacco products and mentioned that he will use all the endorsement fees towards a noble and worthy cause.
Many actors supported his reply in the comments and shares. On the other hand, fans and followers were really agitated. Many said that the actor should not have done that in the first place. Others admitted that humans are greedy mostly and actors are no exceptions when greed takes over.
@akshaykumar 👍 you made the right choice, whatever the reason !
Ajay Devgan commented “It is a personal choice. When you do something, you also see how harmful it would be. Some things are harmful, some are not. I would say it without naming it because I don’t want to promote it; I was doing elaichi. What I feel is more than advertisements, if certain things are so wrong, then they should not be sold.”
Filmmaker Vinod Kapri, commented on Akshay’s post, “Sorry is just one word. But people need a lot of courage to say that.”
As we mentioned earlier, actors are really a special category of people who get a lot of attention. Thus, the result of all that attention is a lot of influencing powers. They have to use that influencing power very wisely and thoughtfully, otherwise, they will communicate some unintended ideas.
Not only does this make them the butt of the joke but also demotivates people to believe in goodness. Earlier this week, in a new ad by Vimal, Shah Rukh and Ajay Devgan were seen welcoming Akshay to the ‘Vimal universe’. Vimal universe, because these advertisements are continuous and unbroken.
All three actors performed the Vimal salute and promoted the product by Vimal. The ad brought an outrage almost instantly on social media after getting aired. People slammed Akshay for endorsing harmful products and disregarded the fitness and health cover that he usually wears.
The controversy became so big in just a few days that Akshay had to reply to his fans. He came up and shared a note of apology with his fans and following. He said that he is deeply affected by the act that he has done and the sentiments that he has hurt.
Furthermore, he mentioned that he will be donating all the proceeds of the endorsement to a charitable and worthy cause, without utilising the fund for himself. He asked his fans to forgive him for this mistake and continue to support him the old way.
Many actors supported it but many fans said that he shouldn’t have done this in the first place. Acts like these, make people think that actors are all liars who just wear a cover of good habits. These acts make people believe that “Everyone has a price” and whatnot. Someone has said rightly that, Absolute power corrupts. Those people in power often do not have the people’s best interests in mind. Power puts the morality of a person to the test and most of the time, people fail.
FAQs
Is Akshay Kumar in Vimal pan masala?
After the huge backlash from his fans, Akshay Kumar stepped down as the brand ambassador of Vimal Pan Masala.
Who is the brand ambassador of Vimal?
Ajay Devgan, Sharukh Khan, and Akshay Kumar were the brand ambassadors of Vimal. But Akshay Kumar has stepped down as the brand ambassador of Vimal Pan Masala.
Ashneer Grover has turned out to be quite a famous name in the startup ecosystem and beyond it. Though Grover has been recognized popularly as the Co-founder and MD of Bharatpe, who has left the organization recently, the popularity of Grover is also due to the fact that he is a judging investor on the reality TV show “Shark Tank India”. The show is the Indian adaptation of Shark Tank, which was famous worldwide, originating from the west. The show offers a clear view of the natural attitudes of venture capitalists in the business world. Here, Ashneer is probably the most famous shark in the Indian adaptation of Shark Tank.
Ashneer is a straight face investor who just speaks when he can add value, but when he speaks, he is brutally honest and mostly rash with words. He is the human adaptation of the idiom, “When it rains, it pours”. Shark tank is one of the hottest shows right now.
Ashneer has also made a series of news and headlines for some other things at his organisation. The BharatPe founder has been in the headlines for multiple reasons. The board of directors and other key people are also in the limelight for some questioning. This article talks about the series of events that happened and the consequences which the events took.
A Little Brief about the Ashneer Grover Controversy
The headlines have been covering Ashneer and the company a lot recently. The news is that the Co-founder and MD of BharatPe, who has reportedly resigned from the organization that he founded, Ashneer Grover, had previously written to the board of directors to remove Suhail Sameer from the board. Suhail is a co-founder too and he is also the current Chief Executive Officer of the Fintech startup BharatPe. There has been a lot of ruckus around the company.
When Ashneer Grover went on a voluntary leave in January, Suhail was made in charge of operations at the headquarters located in New Delhi. Suhail was also promoted to the post of Chief Executive Officer in August last year. All of this ruckus started when Ashneer engaged in a controversial audio clip with a Kotak Mahindra bank employee where he abused him in an alleged call over the financing for the Nykaa IPO. His voice circulated all over social media and he was also criticized severely. Ashneer was eventually asked to take a voluntary leave of absence till the end of March along with his wife and some other Bharatpe employees, which eventually turned into a mandatory leave of absence. Besides, the news was also ripe that the board of directors is in an attempt to scrutinize the financial frauds that Ashneer, his wife, and some other employees, who are allegedly involved with the same and this might also see Ashneer and his wife out of the company along with the others.
He responded strongly to the matter. He was also individually and independently examined for his governance in the company.
According to Ashneer, he is being arm-twisted into venturing out from the startup he built along with Suhail. He also mentioned that he was the one who chose Suhail to be the key person in the company and now Suhail is siding with the board to expel him.
Ashneer also replied that if the company wants to expel him, he wants his worth out of the company. At a valuation of 6 billion dollars, the 9.5% of shares that Ashneer has stands at ₹4000 crores. If the company wants to buy him out, it needs to put his ₹4000 crores on the table, he explained.
The financial frauds updates dated February 23, 2022, that entangled Mr. and Mrs. Grover along with some other BharatPe employees states that Madhuri Jain Grover, the wife of Ashneer Grover, was fired by the Board of BharatPe due to alleged irregularities and has also cancelled the ESOPs vested with her. Though an official statement from the company is still pending, Madhuri’s termination has been confirmed by a spokesperson close to the matter. Fast forward to February 28, 2022, Ashneer Grover resigned from BharatPe with immediate effect following the termination of his wife. With his resignation, Grover also steps down from the positions of Co-founder and Managing Director. Ashneer was recently rejected an emergency arbitration plea, which he filed with the Singapore International Arbitration Centre (SIAC), who tossed out all the 5 pleas that Grover made and left him without a single relief.
“I write this with a heavy heart as today I am being forced to bid adieu to a company of which I am a founder. I say with my head held high that today this company stands as a leader in the fintech world,” writes Ashneer Grover.
Grover’s letter said time and again that he and his family had suffered continuous vilification, for which he had to finally resign. Meanwhile, BharatPe has claimed that the resignation letter of Ashneer Grover was dropped minutes after he received the agenda for a board meeting, which would also include a report submitted by PWC regarding the conduct of Grover, and considering actions on it, as per the reports dated March 1, 2022. However, Grover also claimed that though he is resigning he will still stand as “single largest individual shareholder of the company.”
Ashneer Grover Vs The Board of BharatPe
Ashneer was in the news with a lot of headlines. One of the headlines was the board of a company trying to remove him from the startup. In the initial stage, the board realised that the company funds are being mishandled or tampered with. This is why they decided to put Ashneer and Madhuri Grover and some other employees on a mandatory leave of absence. On further investigation and when other controversies surrounded the founders and a list of its other employees, the Board then wished to remove Ashneer and Madhuri from the company along with some other BharatPe executives. To this, Ashneer replied that he has done nothing wrong and the allegations that the board and the media posted were all wrong. “The allegations had no rhyme and no reason”, he reported.
He admitted that the culprit in the issue is not himself and he further admitted that Suhail was the person who had to be expelled from the company. He said that Suhail was choosing the side of the board of directors to remove Grover as a key person in the company. Suhail deserves to be expelled from BharatPe. It was also brought to notice that Ashneer was the person who believed and entrusted Suhail in managing the company.
According to Ashneer, he is being arm-twisted into leaving the company. Even then, he has no problem or issues in leaving the company but he wants the company to first payout his share.
He said that if the company wants me to step out, then he wants his share of 4000 crores on the table. He thinks that his time is too important to be stuck somewhere in internal politics. He wants to focus on building more and he is not in the retirement stage. This finally led to Ashneer Grover resigning BharatPe on February 28, 2022.
One might think that the issue is around Ashneer Grover and the company. In some sense, one might think that the whole topic is Ashneer Grover Vs. the Board of BharatPe. It is not wrong but it is also not completely true. As the fight of words started between the company and Grover, a string of issues were ignited. The fire also ignited other issues surrounding the whole company, BharatPe.
There were financial authorities asking for credibility in sources of revenue and accounting norms from the company. The company was being screened for corporate governance issues if any.
The flight of issues was such that the RBI had to be involved. The Reserve Bank of India is examining the company to check any discrepancies. RBI is checking if any Corporate Governance rules were violated. If they discover anything fishy about some rules being violated, the company can get a big shock. Along with the awaked goodwill, the RBI can stop future mergers of BharatPe with any other entity.
It was alleged that there existed some financial irregularities at the FinTech startup. The issues and allegations got unearthed very recently during the investigations by risk management authorities and other financial regulatory bodies. One of the most notable authorities in investigations is Alvarez and Marsal, a management and risk advisory firm. The firm had already declared that there were inconsistencies in billing in dealings with the vendors. Besides, Alvarez and Marsal also found that there were payments from the company to vendors whose identities are faked.
As per the latest update dated February 23, 2022, from the sources close to the matter, Ashneer Grover’s wife Madhuri Jain Grover, who headed the Controls of Bharatpe, has been fired on the grounds of financial misappropriation. The probe that was ongoing on behalf of the BharatPe Board stated that Madhuri had used the company funds to fund her personal travels, on skincare products, and to buy expensive electronics goods. Furthermore, the report also includes her alleged expenditure of the company money worth Rs 1 crore for her holiday travels.
Ashneer Grover and Kotak Bank Controversy
The ex-co-founder and managing director of BharatPe, Ashneer Grover stepped down from the daily operations in the company in January. This was followed by a voluntary turned mandatory leave of absence from the company until the end of March, which finally concluded in the resignation of Grover and a termination of his wife.
This was the time when he sparked a lot of controversies. One of the controversies was even a legal spat between Grover and Uday Kotak (Kotak founder).
The first time Grover started a controversy was the time when an audio file was leaked. Ashneer Grover was allegedly abusing a Kotak employee in the leaked audio file. That was the first instance when the cofounder at BhartPe sparked controversy and was quickly spotted on the headlines. Nothing has been proved yet but the news is out there reporting some blowing facts and figures. Grover however explained that all of that was fake.
The audio call headlines got more air when a legal notice surfaced on the news. The notice was from Grovers to Kotak and was dated November 30. This event further made the issue visible to the general public.
Both were seeking compensation claiming that Grovers decided to invest Rs 500 crores in Nykaa IPO through the bank’s IPO financing services. Grover claimed that the bank failed him in financing for the Nykaa IPO. Even then, he had no problem or issues in leaving the company but he first wanted the Board or somebody from the company to buy him out his share. The company at the present time stands at a valuation of $6 billion, as per Grover’s estimates. Ashneer says that he is happy to leave once he is paid his share of Rs 4000 crores. The board of directors is yet to reply to this statement. Moreover, Grover has hired three legal firms to be legally protected in these times. The cloud of allegations, which was hovering during the past couple of months was finally dissolved in the form of the resignation of Ashneer Grover, days after the termination of his wife by BharatPe Board.
Grovers and the Allegations Against Them
Investors at the FinTech firm BharatPe are not liking it with Grover and they are even mostly ready to give his payout to leave the company. As the issue moved further, Ashneer came to the sidelines and the company was in the front of headlines.
There was a preliminary investigation that was done by some external experts in the matter and they highlighted not just one but two big issues associated with the finance technological company.
The two allegedly fraudulent persons who are associated with the company are the Grovers – Ashneer Grover and Madhuri Grover (his wife) who made the cloud of allegations more strong. Madhuri, however, is linked in both the fraudulent issues found by investigators.
The report was helmed by Alvarez and Marsal, a management and risk advisory firm. The report was dated 24 January 2022, and was submitted to the BharatPe board. The Mint reported on 30th January, that the board had arrived at a decision to end the services of Grover based on the preliminary report submitted by Alvarez and Marsal, even as it had commissioned a comprehensive report.
Those two allegations that the company has pushed to Grovers were of financial wrongdoings. The two major grounds on which they were troubled were irregularities in retirement and other allegations were about non-existing vendors on the platform.
An examination of just two of the vendors pegged the amount paid by BharatPe for undelivered services at close to ₹4 crores. Grovers still maintains silence over all the allegations that point to them. The Grovers and BharatPe have not responded yet to the mentioned allegations.
Among all the headlines, Ashneer says that he is being arm-twisted into stepping down and he has done nothing wrong to the company and the society. He says that he is still the finest person to run the company. However, it is taken into notice that Ashneer has hired three legal firms to support him in a fight with the board of the company. He has hired Karanjawala, Ritin Rai and Meraki law to make himself legally prepared for any future proceedings.
A&M’s report found out that there were about Rs 51 crores that were paid to 30 vendors who were really non-existent. These payments and transactions were caught by the directorate general of GDT Intelligence or DGGU. The company on top of that also did not contest the demand for service tax, instead, they paid about Rs 11 crores in dues.
The primary investigation also found some irregularities in the workings of the company and the issue of non-existent vendors.
They found that this entailed an overall expense related to the 30 vendors of approximately Rs 53.25 crores (under validation). The company reversed the claimed input credit of 9.54 crore rupees and paid a penalty of 1.54 crores rupees. A&M has also recommended to the board that these issues require a much deeper investigation and analysis as to why the company was dealing with ‘non-existent vendors’ in the first place.
The top allegations that Ashneer Grover faced in the wake of 2022 are:
He was accused of using expletives against a Kotak Mahindra bank representative.
Grover allegedly was involved in turning the working culture of BharatPe toxic.
Both Grover and his wife, Madhuri Jain Grover, who was also the Head of Controls of BharatPe, participated in financial irregularities involving the funds of Bharatpe.
Ashneer Grover Lost an Arbitration He Filed Against the Probe
As soon as the Board of BharatPe started its investigation against Ashneer Grover, the Co-founder and MD of BharatPe, decided to rage against the same along with cementing his profits if an exit happens by wielding his stakes in the company. After Grover went on a two-month leave of absence, as decided by the Board, he quickly planned to file an arbitration plea with the Singapore International Arbitration Centre (SIAC), where he claimed here that the investigation of BharatPe against him was illegal. However, after the procession of the events, all pretty much against him, Grover lost his arbitration plea, as per the reports dated February 27, 2022, where sources close to the matter stated that the emergency arbitrator (EA) commented that in no ground the governance review at the fintech firm can be stopped.
According to the anonymous sources thorough with the matter, the emergency arbitrator (EA) has reportedly rejected all the five grounds via which Grover placed his appeal, thereby denying a single relief.
Grover had first pleaded about the preliminary investigation being invalid before the arbitrator. This is because, according to him, it violated the shareholder agreement and the articles of association, which is why he pleaded that the company can conduct any such investigation in no authority.
He was also of the opinion that all of the appointments for the independent audit of the internal processes and systems of the company were pleaded to be bad in law. Grover had further alleged that the members of the committee who will be reviewing the governance processes, including the CEO of BharatPe, Suhail Sameer, and the general counsel of the company, Sumeet Singh, are all biased Ashneer Grover also pleaded that the appointment of Suhail Sameer as a director should be suspended and that he should be “restrained from discharging any functions as director of the company”, in the plea, thereby seeking that no action should be taken against him. Grover further added in his plea that the company kept on with the review and assessment in spite of several representations/objections and this was not a transparent process that gave him any chance to present his case. However, all of these claims and his entire plea have been rejected recently by the EA because all the five grounds of relief that Grover gave, seemed to be unreliable. The emergency arbitrator reportedly mentioned that Bharatpe has acted according to the law and governance norms against Ashneer. Mr. Grover can now further challenge the order of the arbitrator before the Delhi High Court, as per sources.
The Resignation of Ashneer Grover
Ashneer Grover resigned from BharatPe and has also relinquished the posts of Co-founder and Managing Director of BharatPe on February 28, 2022, after he was recently notified of the rejection of his emergency plea by the Singapore International Arbitration Centre (SIAC) on all 5 grounds.
Here is a timeline of events to help you have a glimpse of the whole controversy involving Ashneer Grover, BharatPe and Kotak Bank:
Timeline
Events
January 5, 2022
Ashneer Grover’s audio clip with Kotak employee surfaced where he used profanities.
January 6, 2022
Grover declared that the audio clip is fake.
January 8, 2022
The audio clip was taken off from Twitter and SoundCloud and Ashneer Grover eventually deleted his tweet.
January 9, 2022
Reports came to limelight where Ashneer and Madhuri allegedly sent legal notice to Kotak. The bank further decided to press charges on him and Madhuri.
January 17, 2022
The emails exchanged between Ashneer Grover and Harshit Sehji, the MD of Sequoia Capital came into the limelight that dated back to August 2020. This purported that Grover is wanting to partially sell the shares in a secondary transaction
January 19, 2022
Ashneer Grover goes on a voluntary leave of absence
January 29, 2022
BharatPe board decided to onboard independent auditors to run a probe on the company’s practice under Ashneer Grover’s administration
January 30, 2022
Grover hoped to see an amicable resolution but he still hired a law firm to protect him and his stakes in the company.
February 4, 2022
The investigation conducted against the BharatPe co-founder, his wife and some other employees, linked Ashneer and Madhuri Grover with financial frauds. Ashneer Grover’s letter dated February 2, 2022, surfaced, which talked about the removal of Suhail Sameer from the Board.
February 10, 2022
Madhuri Jain Grover questions the leak the initial findings that name her in the Alvarez and Marsal report, with a letter to A&M.
February 11, 2022
CEO Suhail Sameer assures the BharatPe employees to trust the Board for the future proceedings.
February 22, 2022
Ashneer Grover attacks Rajnish Kumar, the Chairman of the BharatPe board, seeking protection against any future actions as part of the settlement process.
February 23, 2022
Ashneer Grover’s wife and the Head of Controls of BharatPe, Madhuri Jain Grover, was fired by the BharatPe Board due to misappropriation of funds, as per the independent audit led by Alvarez and Marsal.
February 27, 2022
Ashneer Grover’s emergency arbitration plea against the governance probe was rejected by SIAC.
February end
According to the reports, the key investors of BharatPe had turned down the Ashneer Grover offer of selling his stakes in the company for over Rs 4,000 crore.
February 28, 2022
Ashneer Grover resigned.
Conclusion
All these leaks here and there point to more and more issues in the bricks of this behemoth organisation. Further investigations are being carried out to get a more clear picture of the whole issue and the resulting consequences. Right now most reports have no rhythm and reason and investigations are continuing.
FAQs
Is Ashneer out of Shark Tank?
Ashneer has confirmed that his deals are not affected by the controversies.
Who is BharatPe CEO?
Suhail Sameer is the current CEO of BharatPe.
Is Ashneer Grover out of BharatPe?
No, the fintech startup has denied any rumours regarding the termination of the company’s co-founder, Ashneer Grover.
Harshit Verma
