‘Can’t give clean chit to yourself’: Delhi HC to Ashneer Grover, declines relief

The high court declined to halt the police investigation against BharatPe co-founder Ashneer Grover and his wife Madhuri Jain Grover in a case filed against them by the fintech unicorn

NEW DELHI: The Delhi high court on Wednesday declined to halt the criminal investigation started by the Delhi police against former BharatPe managing director and co-founder Ashneer Grover and his wife Madhuri Jain Grover, observing that “you cannot give a clean chit to yourself”.

Ashneer Grover and his wife Madhuri Jain Grover petitioned the Delhi high court against the criminal case filed by the Delhi police on a complaint by BharatPe (Twitter/Ashneer_Grover)

Justice Anup J Bhambhani issued notice to the Delhi police’s economic offences wing, which registered a case against Ashneer Grover and his wife last month, on a petition by Grover that asked the high court to cancel the first information report (FIR) filed on the firm’s complaint and pause the investigation in the interim.

“How can this be a subject matter of quashing? You have to make out an open and shut case where a bare reading of the FIR shows that no offence is made out. Does it sound that kind of an FIR?” the bench asked Grover, underlining that “very complex economic transactions” had been flagged in the FIR which needed to be probed. The court will next take up the case on September 25.

Bharatpe sacked Grover’s wife Madhuri Jain Grover, who was head of controls in the company, over alleged financial irregularities. She is alleged to have used the company funds for personal beauty treatments, buying electronic items and family trips to the US and Dubai.

Grover also resigned soon after the company’s board meeting was scheduled which proposed to consider action to be taken against him.

The couple has denied the allegations on several occasions in the past.

During Thursday’s hearing in the high court, Grover’s lawyer argued that the allegations in the FIR do not disclose any criminality on their part and that the company’s annual report of 2021-22 also did not have any instance of the statutory auditors flagging any instance of fraud by them to the board of directors.

Justice Bhambhani countered, wondering how this prevented the FIR from being investigated.

“All of that is a matter of detailed consideration and the board of directors cannot give you a clean chit and you cannot give a clean chit to yourself. Who else is involved we don’t know. It doesn’t sound like a case where even malice would mean that the matter should be scotched here and now,” the high court added.

To the couple’s request for directions under the high court’s inherent powers to the investigating officer to give them written notice in advance in case their custody is required, the high court said the couple can move for anticipatory bail.

“File section 438 (of CrPC for anticipatory bail). Why should I get into my inherent power when there is a statutory power,” the court said.