Delhi founder arrested at 1 am after client's 'complaint'. Wherehouse shuts down

Wherehouse even turned profitable last year, but recent events, co-founder Vaibhav Chawla said, made it 'not worth fighting for.' (Image credit: LinkedIn)

The co-founder of Delhi-based warehousing startup Wherehouse, Vaibhav Chawla, was reportedly arrested at 1 am on Tuesday following what he described as a “complaint” by a client over unpaid dues close to Rs 2 lakh. The arrest comes a day after Chawla announced the shutdown of Wherehouse, citing operational challenges after a few of his employees were allegedly detained by the police without documentation.

According to Chawla, the matter, which started as a dispute between the startup and the complainant, escalated, culminating in police action that he said crossed a line.

In a LinkedIn post titled “Shutting down Wherehouse”, Chawla announced the closure of the company he launched in 2021.

“We started Wherehouse in 2021, with a hypothesis the brands will come closer to the customers. This was pre-Quick Commerce. The hypothesis stands true. The model evolved and we pushed through every obstacle, capital constraints, operational chaos, and the brutal realities of building consumer infra,” he wrote.

The company even turned profitable last year, but recent events, Chawla said, made it “not worth fighting for.” “Wherehouse means nothing if we can’t protect the very people who built it,” he added.

Details of the dispute with the client

According to the details Wherehouse shared with Moneycontrol, the complainant, Curio Lifestyle, approached Wherehouse in July 2024 to expand aggressively in Delhi NCR. A formal agreement was signed in August with terms including monthly fees and salary reimbursement.

Wherehouse placed stock in 75 stores — triple the contractual commitment — but by November 2024, the client began defaulting on payments. Despite repeated reminders, fixed fees and manpower salaries remained unpaid until March 2025. By May 31 this year, the outstanding debt owed to Wherehouse was Rs 1,92,207, while the total stock value acknowledged by the brand was Rs 46 lakh.

On June 1, the client emailed claiming money was due to her. Chawla refuted the claim based on contract terms. Early June saw abusive language and threats to file criminal cases. On June 16, Wherehouse terminated the agreement citing “abusive and threatening behavior.”

Instead of settling dues, the client allegedly filed a criminal complaint with the Economic Offences Wing (EOW) after July 15. Wherehouse submitted its defense on July 23, calling the complaint mala fide and aimed at avoiding payment.

Police action and arrest

By November 16, 2025, officers from Nangloi Extension Police Station began calling Chawla, refusing to share complaint details or documents. Between November 17–28, officers visited Wherehouse premises at least six times, obstructing work and pressuring Chawla to come alone without a lawyer.

On November 28, an officer allegedly threatened staff and took 10 warehouse workers — described as “innocent, blue-collar workers with meager salaries” — to the station, releasing them only after families intervened.

According to updates shared by fellow entrepreneur Shachin Bharadwaj, Chawla was arrested around 1 am on Tuesday.

Founder's statement

For clarity and record, Chawla issued a statement that read, "This is my statement, issued voluntarily in light of the recent events involving Wherehouse and client- Curio Lifestyle. My LinkedIn post-dated 30 November 2025 did not name Curio Lifestyle, but it created a misleading impression that has affected them."

"Curio Lifestyle had made multiple attempts since June to resolve the matter amicably. But I chose to terminate the contract with them and send a termination email within the scope of the Agreement. At the time of my post, Curio Lifestyle’s perishable stock and some pending settlements were in Wherehouse possession that had not yet been reconciled or returned. The posts on social media implying improper conduct by Curio Lifestyle, or suggesting that their complaint caused hardship to Wherehouse or affected my team, were not accurate. Any operational or financial issues faced by Wherehouse were internal matters," it read further.

"I have now begun a reconciliation and settlement process with Curio Lifestyle, and they have agreed to continue this process in good faith. Although I cannot undo the impact of my statements and various posts on social media and news portals. I will ensure that any further misinformation is strictly avoided going forward. I understand that my post directly or indirectly contributed to misinformation and unfair criticism directed at Curio Lifestyle and its leadership and stakeholders. I regret this and apologise for the harm caused," Chawla concluded.