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Synopsis

The Delhi High Court, on Tuesday, prohibited Ashneer Grover, formerly the Managing Director of BharatPe, from asserting any external claims or interests in the 16,110 shares granted to him by Bhavik Koladiya, a co-founder of the fintech firm.

The decision stemmed from Koladiya's plea seeking an interim injunction on grounds that he had transferred said shares in December 2022, yet Grover had not met the payment obligation.

The bench of Justice Prateek Jalan granted interim relief as per Koladiya's request, stipulating that the injunction would persist until the Court resolved Koladiya's lawsuit against Grover.

The company's history indicated that Koladiya and another co-founder, Shashvat Nakrani, founded the fintech company in 2017, with Grover joining as the third co-founder in 2018. Upon Grover's inclusion, he obtained a 32% equity stake, Nakrani held 25.5%, and Koladiya maintained the largest stake at 42.5%. However, six months later, just prior to Sequoia's investment, Koladiya's name was struck from the founders' roster due to concerns raised by significant institutional investors regarding his prior legal entanglements. Allegedly, Koladiya had to depart the company due to complications stemming from a previous conviction in the United States related to a credit card fraud case, which impeded investor negotiations.

Upon resigning, Koladiya transferred his shares to Grover, Nakrani, Mansukhbhai Mohanbhai Nakrani, and other early-stage investors. Koladiya asserted that Grover began asserting ownership over the 16,110 shares between February and early March 2022, refusing to return them upon request, prompting Koladiya to pursue legal action. 

Ashneer Grover, represented by Advocate Giriraj Subramanium, denied the accusations, alleging that the referenced agreement was falsified.

Case Title: Bhavik Koladiya v Ashneer Grover & Anr.