In a big jolt to BharatPe Co-founder and Managing Director Ashneer Grover, he has lost an arbitration in Singapore he filed against the fintech platform for launching a probe against him.
His arbitration failed to convince the emergency arbitrator (EA) to stop the ongoing governance review at BharatPe against him, sources told IANS.
The Emergency Arbitrator has rejected all five grounds of his appeal.
Grover had filed an arbitration plea with the Singapore International Arbitration Centre (SIAC).
In his appeal, Grover pleaded that the investigation was illegal because it violated the shareholder agreement and articles of association.
BharatPe did not immediately comment on the judgement.
The road ahead for Grover is full of thorns as top investors in the fintech platform are not budging an inch to give Rs 4,000 crore sought by him for selling his 8.5 per cent stake and quitting the company.
According to them, Grover's valuation does not hold ground as the company is not valued at $6 billion as being projected.
At a $2.85 billion valuation and at the current dollar-rupee exchange rate, his stake would be around Rs 1,824 crore.
The company's key investors are Sequoia Capital that has nearly 19.6 per cent stake, Coatue has 12.4 per cent stake, Ribbit Capital has 11 per cent, and Beenext 9.6 per cent stake, among others.
While the decision on Grover's fate in the company is yet to be decided, the fintech platform BharatPe sacked his wife Madhuri Jain Grover over alleged financial irregularities during her tenure as head of controls that runs into crores.
Alvarez and Marsal, a leading management consultant and risk advisory firm, is set to submit its report into financial irregularities at the firm during Grovers' time some time next week.
Global audit firm PwC was also roped in auditing the functioning of the fintech platform during the Grovers' tenure.
BharatPe currently has 8 million merchants on its platform.