Rahul Yadav, the infamous founder of Housing.com and currently facing criminal charges pertaining to his startup 4B Networks, saw his anticipatory bail plea denied by a Mumbai court on August 30.
Yadav and one of 4B Networks’ founding members Sanjay Saini are facing charges after a company that had carried out a campaign for 4B Networks slapped a case against them for unpaid dues amounting to Rs 10 crore. The case is registered with the Economic Offences Wing of the Mumbai Police.
The charges in the FIR are under Sections 406 (Punishment for criminal breach of trust), 409 (Criminal breach of trust), and 420 (Cheating) read with 34 (Acts done by several persons in furtherance of common intention) of the Indian Penal Code.
Sources previously told Moneycontrol said that Yadav’s house in Mumbai was searched by the EOW, and that he was being questioned as well. Following this, Yadav filed for anticipatory bail on August 28, which was rejected by the City Session Court in Mumbai on August 30.
The FIR in the matter was registered by the police based on a complaint by Vikas Omprakash Nowal of Interspace Communication. According to the FIR, Interspace put up a total of 83 advertisement hoardings at different places in Pune for five months last year for a campaign by 4B Networks.
Interspace also generated 14 invoices for the work completed and sent them to 4B Networks. Yadav and Saini did not raise any dispute, but the payment was not made. The FIR alleges that while a few payments were made in the beginning, the company refused to pay later on.
The unpaid dues for a year’s worth of services rendered amounted to Rs 7.3 crore, and came up to Rs 10 crore with interest.
Nowal first approached the National Company Law Tribunal, and then went to the cops.
Apart from this case, Yadav is in arbitration with the backer of his startup Info Edge. Info Edge wrote down its entire investment of Rs 288 crore in the company. Info Edge had invested Rs 276 crore in the company and when that was exhausted, the backer gave Rs 12 crore in debt financing to Yadav and the company to pay pending dues of employees and vendors, but this too wasn’t done.
A forensic audit was initiated by Info Edge after this, and when details were not forthcoming from Yadav, Info Edge approached the Delhi High Court. They have since been in arbitration.
The company is also in arbitration with co-working space company Innov8 over unpaid dues of Rs 1 crore. In an order on August 28 after Yadav and his lawyer did not file a response in the matter, the court granted a final opportunity to file a response before October 10, which is the next date of hearing.
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