Kotak Bank to Take Legal Action against Bharat Pe’s MD Grover

Ashneer Grover, cofounder and managing director of Bharat Pe, and his wife Madhuri Grover, had sent a legal notice to Kotak Mahindra Bank on October 31 for failing to provide IPO financing in Nykaa’s initial public offering (IPO), it has emerged. ET has seen the copy of the notice sent by Grover’s lawyer.

While the notice was sent in October, Kotak Mahindra Bank in response to ET’s query on Sunday said it will take ‘appropriate legal action’ against Grover on this matter.

“This notice was received by as and was replied to it appropriately at the time, including placing on record our objections to inappropriate language used by Mr. Grover,” the Mumbai-based bank said, adding that there is no breach or violation by the Kotak Group in any manner whatsoever.

Grover told ET he had no comments to offer while Sumit Agrawal, founder of Restreet Law Partners, representing Grover on the case, declined to comment on ET’s agreements. “To the shock and surprise of our clients, on October 28, 2021, after having repeatedly assured our clients that the shares of FSN (Nykaa’s parent firm) would be allotted to them, Kotak informed our clients that it would not be able to provide financing for the Nykaa IPO,” wrote Grover’s legal team to Kotak Mahindra Bank in October.

“Kotak’s refusal to comply with its assurances was on the pretext that it had decided not to finance the Nykaa IPO due to ‘erratic FII movements’ and ‘very high lending rates’,” the notice added.

According to Grover’s lawyer, Kotak’s ‘eleventh-hour’ denial of IPO financing to Grover cost him a “business/investment opportunity about which they had informed Kotak more than a month in advance of the launch of the IPO”.

Further, the notice also states that Kotak’s statement that it has not provided IPO financing to any individual for the Nykaa IPO is blatantly false and incorrect, since the bank has provided the services to Suhail Sameer, the CEO of Bharat Pe itself. In August, last year, Grover moved to the role of managing director of the startup he cofounded in 2018. New hire Sameer was made the CEO of the company. S-ET

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