Info Edge files fraud complaint against 4B Networks’ founder – ET RealEstate

HomeReal estateInfo Edge files fraud complaint against 4B Networks' founder - ET RealEstate

Become a member

Get the best offers and updates relating to Liberty Case News.

― Advertisement ―

spot_img

GST mop-up in November up 8.5% to ₹1.8 lakh crore – Times of India

NEW DELHI: Goods and services tax (GST) collection rose 8.5% to Rs 1,82,269 crore in Nov, the fourth highest since the new...

<p>Representative image </p>
Representative image

Info Edge, the parent company of jobs listing portal Naukri, lodged a first information report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, and others on Friday over accusations of fraudulent activities related to the misuse of 4B Networks’ funds.

“An FIR has been registered by the Bandra Police Station (Mumbai Police) on November 29, 2024 against Rahul Yadav, Devesh Singh, Pratik Choudhary, Sanjay Saini (and unnamed others) in connection with 4B Networks, alleging inter alia commitment of certain fraudulent acts involving 4B Networks’ funds,” Info Edge said in a stock exchange filing on Saturday.

Yadav is also the cofounder of Housing.com.

Last year in July, Info Edge initiated arbitration proceedings against 4B Networks after the startup failed to give crucial information regarding its operations and management for a forensic audit.

It had appointed Deloitte to conduct a forensic audit of 4B Networks after the startup failed to disclose details of financial transactions and related-party activities sought by the investor.

“There shall be no material financial impact or effect on the company’s business operations on account of the FIR,” it said.

The consumer internet group had written off its equity investment of Rs 276 crore in 4B Networks during the December 2022 quarter citing excessive cash burn, prevailing liquidity issues and uncertainty regarding funding options.

Info Edge said at the time that the startup was showing strong growth but due to high cash burn and the overall funding environment, decided to write off the investment following “principles of conservatism.” Info Edge cofounder Sanjeev Bikhchandani has also admitted that investing in the startup was a mistake.

Founded in November 2020, 4B helped real estate developers and brokers communicate and conduct business through the Broker Network Platform. It also assisted brokers in conducting site visits and offering home-loan-related services to clients.

Info Edge’s subsidiary Allcheckdeals India Pvt Ltd (AIPL) had invested Rs 288 crore, including Rs 12 crore as debt financing, in 4B Networks.

  • Published On Dec 2, 2024 at 09:00 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles


Scan to download App




Source link

RATE NOW
wpChatIcon
wpChatIcon