Kotak intends to sue over a viral video of BharatPe founder Ashneer Grover.

In response to Grover's legal notice, Kotak Wealth Management, represented by law firm Khaitan & Co, stated it reserves the right to take legal action if its workers' lives are threatened.. Grover's apparent denial of phone calls is further contradicted by the content of the legal document.On the validity of the January 8 call 

Kotak Wealth Management said in an emailed statement that it has submitted an appropriate response to Grover's legal notification. "We got the letter and responded correctly at the time, including recording our concerns to Mr. Grover's unacceptable remarks." Legal action is being taken in the appropriate manner." 

Grover's spokeswoman did not respond to a request for comment. 

The recording of a phone call supposedly between Grover and a Kotak Wealth Management employee was leaked, according to Kotak. The video was first posted online on Wednesday by an unknown Twitter account. Grover may be heard cursing and threatening to kill a Kotak employee in a so-called police interaction on the released tape.purportedly for failing to raise funding to purchase Nykaa's initial public offering (IPO).

Grover issued a comment on Twitter after the audio clip became public, stating that it was a hoax. “Friends. Cold! This is a phoney audio recording of a con artist attempting to extort money (US$240K in bitcoin). I'm not going anywhere. I'm more interesting. And there are already enough scammers on the internet," Grover wrote on Twitter. He took the denial down from Twitter and LinkedIn afterwards. 

Grover, the founder of fintech upstart BharatPe, and Kotak's wealth management arm had exchanged three legal emails in total. The communication has been examined by the Mint. Grover began the legal battle through his law business, Regstreet Law Advisors. However, in response to the legal notice, Kotak Wealth confirmed the authenticity of Grover's call with a Kotak Wealth staffer.

"In the recent past, your customers have called our client's employees on several occasions over the phone and put their lives in danger, in addition to using unparliamentary and abusive language, for which our client and his/her employees are subject to appropriate legal reserves the right to take action." In response to Grover's October 30 legal warning, Kotak replied on November 2 that "steps were taken as they may be instructed." 

The legal dispute reveals how wealthy individuals obtain large short-term bank loans to cover their buying of shares in the proposed IPO. After the stock list, they sell their shares and repay the banks.

Grover and his wife Madhuri claimed in the first legal notice that they were in contact with Rohit Mohan, Senior Director, Ultra High Networth Individuals Practice at Kotak, to get essential internal clearances for Nykaa membership (FSN E-Commerce Ventures Ltd.). Shares worth Rs. 500 crores were invested in. 

In the legal notice, Sumit Agarwal, partner at Registry Law Advisors, said, "Our clients had planned to apply for subscription of shares of FSN in the names of both Mr. Ashneer Grover and Ms. Madhuri Grover, for shares of Rs. 250 crore each."

Grover claimed that despite pledges, the money did not arrive, forcing him to shut a thriving firm. 

According to the legal notification, "Kotak's refusal to provide IPO financing to our clients for the Nayaka IPO is a blatant infringement of the legal obligations owed to our clients as their wealth managers." 

In response, Kotak said through his law firm, Khaitan, saying any funding is at the bank's discretion, and Grover has no contractual rights.

"Our client rejects any wrongdoing on his side, whether in regard to the financial aid mentioned by you or otherwise." Your customers are well aware that financial assistance is granted at the lender's discretion, and no contract or sanction letter has been issued in their favour," Kotak added. 

"Our clients firmly dispute the charges of defamation relating to any unparliamentary or hate speech used by our clients, or that our clients have abused your clients or its agents," Grover's attorneys claimed in response to Kotak's lawsuit. Your Customers have clearly structured these complaints only as a counter-claim to our Customers' claims of breach of numerous legal responsibilities by Your Clients." 

Grover stated in the legal notice that he was terminating all financial ties with Kotak Mahindra Bank.