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BharatPe co-founder Ashneer Grover engaged in “extensive misappropriation of company funds” and “siphoned [off] money,” the Indian fintech startup said Wednesday, citing review by independent advisors, the latest in a series of strange turns and publicly played out drama at one of the fastest growing firms in the country. The disclosure comes a day after Grover resigned from the startup’s board.

“The Grover family and their relatives engaged in extensive misappropriation of company funds, including, but not limited to, creating fake vendors through which they siphoned money away from the company’s expense account and grossly abused company expense accounts in order to enrich themselves and fund their lavish lifestyles,” the startup said Wednesday.

The Board of BharatPe, a three-year-old startup that helps millions of merchants accept money digitally and provides them with credit, directed a thorough review of the company’s internal controls in January this year after receiving complaints, it said.

Earlier this year, an alleged audio clip surfaced on Twitter of a man — presumed to be Ashneer — hurling abusive and life threatening statements over a phone call to a Kotak Bank representative over not getting financing to buy shares in fashion e-commerce Nykaa’s IPO. The clip, which went viral on social media, triggered a chain of events that prompted the board to conduct an investigation.

Grover has maintained innocence in recent weeks and in a televised interview on Tuesday threatened to make public “dirt” on investors and board members if the startup continues to hurt its reputation.

“The company has taken strong objection to Mr. Grover spinning lies and hurling baseless allegations and threats,” the startup said Wednesday.

An investor of BharatPe said the recent events at the startup have been the most bizarre episode he has ever witnessed in the Indian startup ecosystem and publicly wiped off billions of dollars of value. He requested anonymity speaking about private matters.

This is a developing story. More to follow…

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