The Economic Offences Wing (EOW) of the Delhi Police has arrested Deepak Gupta, a relative of BharatPe's co-founder and former Managing Director Ashneer Grover, in connection with a multi-crore financial fraud case involving the fintech giant.
Gupta, who is married to the sister of Madhuri Grover (Ashneer Grover’s wife), was taken into custody on the night of September 19, 2024. His arrest marks a significant development in the ongoing probe into alleged financial irregularities at BharatPe.
Deepak Gupta, a former Head of Procurement at Resilient Innovation, the parent company of BharatPe, is the latest individual to be apprehended as part of the broader investigation. The arrest follows months of legal scrutiny into the financial conduct of BharatPe’s former leadership, including Ashneer Grover and his family members.
Background of the Allegations
The investigation into BharatPe's financial irregularities began after the controversial departure of Ashneer Grover in 2022. BharatPe, one of India’s leading fintech companies, filed a criminal complaint in December 2022 accusing Grover and several of his family members of misappropriating funds through fraudulent schemes between 2019 and 2021. The five accused named in the complaint are:
-
Ashneer Grover, former MD and co-founder of BharatPe
-
Madhuri Grover, former Head of Controls at BharatPe and Ashneer’s wife
-
Shwetank Jain, Madhuri's brother
-
Suresh Jain, Ashneer’s father-in-law
-
Deepak Gupta, Madhuri’s brother-in-law and husband of her sister
The EOW formally registered an FIR in May 2023, accusing the individuals of committing an ₹81 crore fraud, allegedly causing significant financial damage to BharatPe through various illegal methods. Gupta's arrest follows the earlier apprehension of Amit Kumar Bansal in August 2024, who was accused of being involved in setting up fictitious firms that siphoned funds from BharatPe.
Specific Allegations Against Ashneer Grover and His Family
The crux of the allegations centers around the systematic siphoning of funds from BharatPe using illegitimate means. According to the complaint, Ashneer Grover and his family employed various tactics, including:
-
Payments to Bogus HR Consultants: BharatPe alleges that Grover's family made illegitimate payments to human-resource consultants who did not exist, essentially fabricating consultant roles to funnel company money.
-
Inflated Vendor Payments: It is claimed that the family directed inflated payments to pass-through vendors that were connected to them, allowing them to pocket the difference.
-
Input-Tax Credit Manipulation: The Grover family allegedly created fictitious transactions to falsely claim input tax credits, thus lowering their tax liabilities unlawfully.
-
Illegal Payments to Travel Agencies: Payments were made to travel agencies, again with fabricated invoices, as part of the broader scheme to embezzle funds from BharatPe.
-
Destruction of Evidence: Madhuri Grover, as per the allegations, also played a role in forging invoices and tampering with key financial documents to cover up the misappropriations.
The total estimated loss to BharatPe due to these fraudulent activities stands at ₹81.3 crore. MZM Legal, a law firm representing BharatPe, has been advising the company on its legal strategies in this high-profile criminal case.
Arrest of Deepak Gupta
Deepak Gupta’s arrest marks a crucial point in the ongoing investigation. Gupta, a family member and former BharatPe executive, was deeply involved in the company's procurement processes, making him a key suspect in the embezzlement case. According to reports, Gupta is currently being held at Mandir Marg Police Station in Delhi and is expected to be produced before the Chief Judicial Magistrate (CJM) at Saket Court.
The police are likely to seek his remand to further investigate his role in the alleged misappropriation of funds. Sources close to the investigation have indicated that Gupta's involvement may extend to coordinating inflated payments to vendors and other fraudulent financial transactions.
Previous Arrests and Implications
Deepak Gupta is the second individual to be arrested in connection with the BharatPe fraud investigation. Last month, the EOW arrested Amit Kumar Bansal, an individual associated with non-existent firms that reportedly received ₹72 crore in fraudulent payments between 2019 and 2021. Bansal's arrest was seen as a key development, pointing to a broader network of individuals involved in siphoning funds through shell companies.
The legal proceedings against Ashneer Grover and his family members have cast a shadow over BharatPe's corporate governance practices. Once hailed as one of the most promising fintech companies in India, BharatPe has faced increased scrutiny following Grover’s exit and the subsequent allegations of financial mismanagement.
What Lies Ahead for BharatPe and Its Accused?
As the investigation progresses, the legal proceedings are expected to intensify. The arrest of Deepak Gupta brings the case closer to a resolution, with more details likely to emerge during police interrogations and court hearings. The outcome of these legal battles will not only impact BharatPe's corporate reputation but may also serve as a broader lesson for fintech governance in India.
For now, BharatPe continues to cooperate with law enforcement agencies as it seeks to recover the lost funds and hold those responsible accountable. As the EOW delves deeper into the case, further arrests or legal actions cannot be ruled out, particularly against the other accused family members of Ashneer Grover.
With inputs from agencies
Image Source: Multiple agencies
© Copyright 2024. All Rights Reserved Powered by Vygr Media.
