Indian payments company BharatPe to revise its governance framework and lay off several employees
BANGALURU, May 10 (Reuters) – Indian payments startup BharatPe said on Tuesday that its board had recommended several actions, following a corporate governance review, including the dismissal of several employees and suppliers and the initiation of criminal charges against them for fault.
IPO hopeful BharatPe, which allows shop owners to make digital payments via QR codes, had launched a corporate governance review in January in hopes of allaying concerns among investors regarding a public dispute involving personal investments by one of its co-founders.
The company, which competes with apps such as SoftBank’s Paytm and Google Pay in India’s booming payments market, has come under intense scrutiny from investors and the media after the co-founder Ashneer Grover has sought damages from Uday Kotak, director of Kotak Mahindra Bank. KTKM.NSalleging that the bank had denied him funding for a personal investment.
In January, Reuters reported that the audit would assess whether senior BharatPe executives are properly disclosing personal investments and verifying conflicts, leading to a new code of conduct.
After a detailed review of a report to determine the willful misconduct and gross negligence of a former founder over the past two months, BharatPe’s board has recommended several decisive measures which are being implemented, it said. the company in a press release.
BharatPe said he was introducing a new vendor sourcing policy to mitigate any risk of employees engaging in suspicious transactions to enrich themselves, adding that he had terminated the services of several employees in departments that were directly involved with blocked suppliers.
“Many suppliers involved in abusive practices, such as incorrect or inflated invoices, have been blocked from further business with the company…the company has already issued legal notices to these suppliers to recover the amount and will file civil or criminal lawsuits against them in the coming days,” BharatPe added.
(Reporting by Chandini Monnappa in Bengaluru; Editing by Rashmi Aich)
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