Corprate

Governance
Failures and
other legal issues
Bharat Pe was founded Ashneer
Grover and other co founders.

He has multiple investors in his

firm which he co founded.
The pattern of investment is
- BHARAT PE
Some facts
Founded business in 2018

Worth us$ 6 billion right now

The decision is based on a preliminary internal investigation that has thrown up indications of financial
fraud, the people said, requesting anonymity. The company has engaged a law firm and a risk advisory
consultant to conduct a more detailed investigation, the results of which are expected to take two
months.
ET reported on January 17 that Grover has had a spat with Harshjit Sethi, a managing director at Sequoia Capital India, which
holds more than 19% of the company.

“Messages and threats from you (Grover) over the last few days and months have been hurtful and disappointing…
Specifically we have heard your message of not wanting us on the cap table [...] We need to have a decisive conversation about
how the relationship between Sequoia and BharatPe changes going forward,” Sethi wrote in a mail to Grover in August 2020.

The disagreements between Sethi and Grover began after BharatPe's Series B funding was delayed due to Sequoia not
committing to the round. People familiar with the incident said that Sequoia had also raised concerns about Grover wanting to
partially sell shares in a secondary transaction.This resulted in creating friction between Sequoia and Grover, which eventually
led to the mail exchange
Cyrus Mystry removal as Tata
chairman in 2016
Cairn Energy
Retrospective taxation issue

Cairn energy operated oil field in INDIA

It is a British company

It went for an IPO

Later its Indian operations was acquired by Vedanta

The govt. filed a case of retrospective taxation.

Vodafone bail out by India
The government will emerge as the largest shareholder of Vodafone Idea, acquiring a 35.8% stake in
lieu of the Rs 16,000 crore pending interest payments. Stake acquisition of private entities was never
on the government’s agenda and serves at cross purposes, given its deep desire for privatisation. The
biggest achievement this fiscal is undoubtedly the sale of Air India, but owning up stake in Vodafone,
even out of compulsion, seems ironic just when the annual disinvestment target is likely to be missed
by a country mile. The rescue act isn’t finished yet, as being the largest shareholder, it’s in the
government’s interest to protect Vodafone’s equity value so that the telco doesn’t break the buck.  
Much of the telecom operators’ suffering was due to intense tariff wars and policy pitfalls. They
suffered a fatal blow when the verdict in the Adjusted Gross Revenue case went in favour of the
government. The worst hit among them was Vodafone Idea, which has one foot in the grave, reeling
under a debt burden of `1.95 lakh crore. Its subscriber base crashed from 400 million to some 250
million, while its market share plunged from 35% to 24%. Now, the government’s bailout package
eases its cash flows and improves the near-term liquidity concerns reducing its payment outgo
On its part, Vodafone must give its all to raise long-term funding needed to acquire 5G spectrum,
accelerate network investments, arrest subscriber attrition, and regain lost customers and market share.
Importantly, it must start making money soon so as to meet its enhanced payments to the government
once the moratorium period ends.  

But Vodafone’s survival also rests on two other stakeholders—the government and arch rivals Bharti
Airtel and Reliance Jio. First, telcos must be bent on increasing average revenue per user as that’s the
only way to pull through. As analysts note, an increase in tariffs appears certain now that the likelihood
of Vodafone’s demise is a less-likely event. Lastly, the government, with stakes in multiple telcos, must
ensure a sound policy regime to avoid the need for further relief packages.