Naukri.Com's Info Edge Files FIR Against Rahul Yadav and Others - Details | Republic ...
Info Edge, the consumer internet group known for platforms like Naukri.com, has taken legal action by filing a First Information Report (FIR) against Rahul Yadav, the founder of its affiliated company 4B Networks, and several others. The FIR was filed on November 29, 2024, with the Bandra Police in Mumbai following a complaint from AIPL.
Details of the Complaint
The FIR specifically names individuals including Yadav, Devesh Singh, Pratik Choudhary, and Sanjay Saini, along with others who have yet to be identified. The complaint accuses them of misusing company funds and engaging in fraudulent activities related to the funds of 4B Networks, which is an indirect subsidiary of Info Edge.
Background of 4B Networks
4B Networks was founded in November 2020 by Yadav with the aim of facilitating communication and transactions in the real estate sector. The platform also provided assistance in loan origination for end-consumers. Info Edge made a significant investment of Rs 288 crore in the startup through its subsidiary, ALLcheckdeals India, in early 2021, thereby acquiring a 59 per cent stake in the company.
Legal Actions Taken by Info Edge
Due to a lack of transparency from 4B Networks regarding its operations and financial transactions, Info Edge initiated a forensic audit. However, the startup failed to provide essential details as required by their agreement, such as information on management, operations, and dealings with related parties.
As a result, Info Edge resorted to legal measures and filed a petition in the Delhi High Court in July 2023. The court directed the matter to arbitration. Subsequently, in August 2023, Info Edge lodged a complaint with the Economic Offense Wing (EOW) against Yadav and 4B Networks for engaging in suspicious transactions with 4B Realtech Pvt Ltd, a company allegedly associated with Yadav.
Financial Impact on Info Edge
Following the write-off of its investment in 4B Networks, Info Edge reported a loss of Rs 532 crore. This loss comprises the Rs 288 crore invested in cash, as well as an additional notional loss due to the prior overvaluation of the startup, which was initially estimated at Rs 719 crore before the write-off.
Last updated: 10:08 IST, December 2nd 2024
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