Don’t go by western concept of arm’s length: Ashneer tells startup founders

BharatPe’s former MD Ashneer Grover, who was recently slapped with a civil suit and criminal charges for cheating and siphoning off funds from the company he co-founded, has advised startup founders not to go by Western concept of arm’s length and related party transactions.

In his new book ‘Doglapan’, Grover says there is nothing wrong in giving spouses a board position as they invest in founders’ success and will be a victim of their failure, like no one else.

“Just because your business has capital coming in from the US, you do not have to go by their concept of management – of not involving family in business,” he writes.

“To my mind, the concept of a related party transaction in India is totally irrelevant.”