Former BharatPe MD and Wife Challenge Look Out Circular in Delhi HC

Payment app BharatPe’s former Managing Director, Ashneer Grover, and his wife, Madhuri Jain Grover, have approached the Delhi High Court (HC) to challenge the Look Out Circular (LOC) issued against them. The LOC was issued in connection with an ongoing investigation by the Delhi Police’s Economic Offences Wing into a cheating and forgery case.

Justice Subramonium Prasad, who heard the matter, listed it for a later date, stating that the investigation is still at a nascent stage. The HC emphasized that it is not appropriate to intervene at this point and that the LOC may have some justification.

In their plea, Ashneer Grover and his wife have requested the suspension of the LOC and sought the court’s direction to authorities not to interfere with their right to travel abroad. The court has asked the concerned authorities to consider their application for permission to travel abroad for two days. Additionally, the court noted that their plea to quash the FIR lodged by the EOW is still pending in the HC.

The couple’s counsel highlighted their cooperation with the investigation and multiple ongoing proceedings against them. They argue that the LOC is unwarranted since they have been regularly appearing before the investigating officer and cooperating with the probe.

Ashneer Grover and Madhuri Jain Grover were informed for the first time about the LOC when they were detained at the Indira Gandhi International Airport on November 16, 2023, while attempting to travel to the US. The LOC, which was operational from November 6, 2023, was issued in connection with an alleged fraud case of INR 81 crore filed by fintech unicorn BharatPe against the couple.

The complaint by BharatPe alleges that the Grovers caused significant damages through illegitimate payments to bogus human resource consultants, inflated payments, and sham transactions. It also accuses Madhuri Jain Grover of submitting forged invoices and destroying evidence. The complaint led to the filing of an FIR by the EOW in May last year.

Madhuri Jain Grover was the head of controls at BharatPe, but was fired in 2022 after a forensic audit revealed irregularities. Subsequently, Ashneer Grover resigned as CEO in March 2022.