Kotak Mahindra Bank is not engaged in any discussion with exiled BharatPe Co-Founder Ashneer Grover regarding the so-called dispute over IPO financing, a letter from the bank’s legal representative to Grover said.

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Grover and his wife Madhuri have been locked in a legal tussle with Kotak Mahindra Bank since they sent a legal notice to the bank on October 31, 2021, for failing to provide financing despite assurance and allocation of shares in beauty startup Nykaa’s initial public offering (IPO). Reports said the couple had sought Rs 500 crore in damages.

Also read: Ashneer Grover in talks to sell his 9.5% stake in BharatPe: Report

In October and November last year, the two parties had exchanged three legal notices.

The IPO dispute soon turned into a war of words. Last month, a leaked audio tape of Grover threatening and hurling abuses at the Kotak Mahindra Bank employee surfaced, landing the merchant-focussed fintech firm’s founder in controversy.

Kotak Group objected to Grover’s use of inappropriate language and brash behaviour and said it is pursuing "legal action" against the BharatPe co-founder. The same month, Grover went on a voluntary leave of absence until March-end.

On January 19, RegStreet Law Advisors, the law firm representing Grover and Madhuri, sent a letter to Kotak’s legal representative Khaitan and Co, saying the two parties have discussed among themselves the issues surrounding the Nykaa IPO and have agreed to resolve them amicably.

Also read: BharatPe founder Ashneer Grover accuses CEO Suhail Sameer of siding with investors to oust him

“Neither party wishes to proceed further with respect to the allegations and counter-allegations made in relation to the issue," Mint quoted Sumit Agrawal, Founder and Partner of RegStreet Law Advisors, as saying in the communication.

In reply to the letter on January 21, Khaitan and Co said there was no communication between the two companies other than Kotak’s reply to the legal notice in November.

As Kotak has not discussed the matter with Grover, no decision could have been arrived at between the parties, Khaitan and Co said in the letter reviewed by Mint.

“Our client is surprised to read about the same and wonder why such a non-existent discussion is being attributed to our client," the letter read.

Also read: Big Deal: Discussing the way forward for BharatPe

In the letter, Khaitan and Co said Grover could withdraw the legal notice sent in October if he wished to end the matter.

While being embroiled in the controversy, Grover had heaped praises on billionaire banker Uday Kotak in the last week of January through a LinkedIn post.

“Uday Kotak is a legend,” Grover had written, recalling his seven-year stint at the bank. “Can tell you, no one understands or does finance better in India," Grover said about Kotak.

Also read: Ashneer Grover controversy won't impact PMC bank merger: RBI Sources

(Edited by : Shoma Bhattacharjee)

First Published:Feb 9, 2022 6:40 PM IST