Active Stocks
Sat Mar 02 2024 12:29:56
  1. Tata Steel share price
  2. 155.30 3.53%
  1. HDFC Bank share price
  2. 1,430.50 -0.05%
  1. State Bank Of India share price
  2. 773.40 0.53%
  1. ICICI Bank share price
  2. 1,084.60 -0.21%
  1. Axis Bank share price
  2. 1,095.00 -0.40%
Business News/ Companies / News/  Legal tussle between Grover, Kotak Wealth not over yet

Legal tussle between Grover, Kotak Wealth not over yet

Khaitan and Co said Kotak has not entered into discussions with Grover and his wife

Khaitan and Co said if Grover wished to close the matter, he needs to withdraw the legal notice sent in the last week of October.Premium
Khaitan and Co said if Grover wished to close the matter, he needs to withdraw the legal notice sent in the last week of October.

MUMBAI : The legal tussle between BharatPe co-founder Ashneer Grover and Kotak Wealth Management, which has cascaded into a row between him and the BharatPe board, looks like dragging on.

In a letter to Grover, Kotak’s legal representative Khaitan and Co. said the firm has not entered into any discussions with Grover and his wife in the so-called dispute over IPO financing.

Mint has reviewed a copy of the communication. An emailed query to Kotak group remained unanswered. Text queries sent to Grover were not answered.

The letter was sent in response to a communication by a law firm representing Grover and his wife Madhuri Grover.

RegStreet Law Advisors had sent a communication to Khaitan and Co. on 19 January stating that his clients had instructed that Grover and Kotak Bank Ltd and its executives have discussed among themselves the issues surrounding the lack of IPO financing for Nykaa shares.

“Both the parties have agreed to resolve the issue amicably and neither party wishes to proceed further with respect to the allegations and counter-allegations made in relation to the issue," said Sumit Agrawal, founder and partner, RegStreet Law Advisors in the communication.

In its response on 21 January, Khaitan and Co. said other than its reply to the legal notice in November, there has been no communication.

“Our Client (Kotak Mahindra Bank) has not entered into any discussions with your clients in the matter and hence there is no question of any decision having been arrived at between the parties. Our Client is surprised to read about the same and wonder why such a non-existent discussion is being attributed to our client," said Khaitan in the letter.

It added that if Grover wished to close the matter, then he needs to withdraw the legal notice sent in the last week of October.

In a LinkedIn post in the last week of January, Grover had praised banker Uday Kotak, calling him a legend.

“I had the fortune of starting my career in Kotak -- 7 years -- and can tell you no one understands or does finance better in India," he had said.

The matter pertains to a disagreement between Grover and Kotak’s wealth management firm over an alleged case of failed IPO-financing. The two parties have exchanged three legal notices in the last week of October and the first week of November.

The Grovers had alleged that despite assurances, he was not given funds to support his bid for Nykaa shares which led to him losing out on a profitable trade.

The dispute over IPO financing led to a war of words. In a leaked audio tape, Grover can allegedly be heard abusing and giving death threats to an employee of Kotak Wealth.

Kotak, in reply to the legal notice, also alluded that Grover had in the recent past issued life threats to the lives of its employees besides using foul language. Kotak has threatened legal action on this issue.

Soon after Kotak’s statement that it is considering legal action, Grover went on voluntary leave over concerns about his behaviour. This has snowballed into Grover finding himself at-odds with the board of BharatPe and left fighting for his equity.

In the letter on 21 January, Khaitan also said that Kotak does not provide IPO financing but does it through a third party. For Grover’s previous IPO bids, it was done through Infina Finance Pvt. Ltd.

“Your Clients (Grover) are aware that our Client (Kotak) is not in the business of IPO financing as alleged/suggested in your notice. No commitment was made regarding whether Infina would lend monies to your Clients," the letter said.

“Your Clients were aware that our Client was only facilitating your Clients in availing financing for applying in the Nykaa IPO and assisting your Clients in completion of documentation for IPO funding through third party and not for any documentation for subscribing for the IPO," it added.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Jayshree P Upadhyay
Jayshree heads a team of reporters focussing on legal, regulatory, investigative stories. She has worked for over a decade, reporting on financial scams, legal stories and the intersection of corporate and regulatory issues. She is based in Mumbai and has previously worked with Business Standard, Mint, The Morning Context and Bloomberg TV India.
Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 09 Feb 2022, 01:19 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie