Justice Sanjeev Narula issued the order after being informed that another bench had quashed the FIR that same day. With the FIR now nullified, the LOC issued by the Bureau of Immigration, on behalf of the Economic Offences Wing (EOW) of Delhi Police, is deemed invalid.
![[BharatPe 81 Crore Fraud Case] Delhi High Court Quashes Lookout Circular Against Ashneer Grover, Wife Madhuri](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/10/image-29.png?resize=702%2C473&ssl=1)
NEW DELHI: The Delhi High Court today (12th Nov) has canceled a lookout circular (LOC) issued against Ashneer Grover, former Managing Director of BharatPe, and his wife Madhuri Jain Grover.
This decision follows the recent quashing of an FIR lodged against them for alleged cheating and forgery, a fact confirmed by both parties during the hearing.
Justice Sanjeev Narula issued the order after being informed that another bench had quashed the FIR that same day. With the FIR now nullified, the LOC issued by the Bureau of Immigration, on behalf of the Economic Offences Wing (EOW) of Delhi Police, is deemed invalid.
The Grovers had filed a petition to cancel the LOC, which they became aware of on November 16, 2023, when detained at the Indira Gandhi International Airport before a planned trip to the U.S. The LOC had been active since November 6, 2023.
The FIR against Grover, his wife, and others was filed in May 2022 by the EOW on BharatPe’s complaint, accusing them of causing damages of Rs 81.3 crore through fraud, including bogus HR payments, fake tax credit transactions, and falsified invoices.
Madhuri Jain Grover, formerly head of controls at BharatPe, was terminated in 2022 following a forensic audit, while Ashneer Grover resigned as CEO in March 2022.
Brief Facts
The BharatPe fraud case revolves around allegations of financial misconduct and irregularities within the fintech company. Ashneer Grover, the former Managing Director (MD) and co-founder, along with his wife, Madhuri Jain Grover, came under scrutiny after BharatPe initiated an internal investigation into their financial activities.
In early 2022, BharatPe began an internal audit to investigate potential financial irregularities. The focus was primarily on Ashneer Grover and his wife, Madhuri Jain Grover, who served as Head of Controls. The audit uncovered instances of alleged misuse of company funds for personal expenses, including luxury travel, lavish personal purchases, and payments to vendors linked to the couple.
Following the investigation, Ashneer Grover was placed on leave in January 2022, and Madhuri Jain Grover was subsequently terminated from her position in February 2022. The audit report was submitted to BharatPe’s board, leading to the Grovers being accused of fraud. The company sought legal recourse, and a Look Out Circular (LOC) was issued against the couple by the Economic Offence Wing (EOW) of the Delhi Police.
BharatPe alleges that the Grovers misappropriated funds to the tune of Rs 81 crores through fake invoices and by funneling money to companies associated with their family. The couple has denied the charges, with Ashneer Grover accusing the company’s board of acting out of vendetta.
As part of the investigation, the Delhi Police’s EOW placed restrictions on the couple’s travel, leading to legal proceedings. In September 2023, the Delhi High Court granted them permission to travel abroad, although their plea was initially opposed by the Special Public Prosecutor representing the Delhi Police.
