Info Edge subsidiary 4B Networks, its director Rahul Yadav, and founding member Sanjay Saini have been accused of defrauding an advertising firm Interspace Communication for over Rs 10 crore.
The allegations stem from a contract between 4B Networks and Interspace Communication for advertising services rendered in 2022. Interspace Communication claims that 4B Networks failed to make full payment for the services, resulting in a loss of over Rs 10 crore.
A formal complaint has been filed with the Mumbai Police’s Economic Offences Wing (EOW), and an FIR has been registered against Yadav, Saini, and 4B Networks.
The accused have been charged with cheating and breach of trust under the Indian Penal Code (IPC). No arrests have been made yet, but the investigation is ongoing. 4B Networks was founded as a proptech company and offered a platform to enable brokers and real estate developers to communicate with each other.
Info Edge, a consumer internet company, invested Rs 288 crore in 4B Networks in 2021. However, Info Edge wrote off its entire investment in June 2023 after 4B Networks refused to share financial data.
In July 2023, Info Edge and 4B Networks agreed to appoint an arbitrator to mediate their dispute. The allegations against Yadav, Saini, and 4B Networks are serious, and the investigation is ongoing.
Categories: Acquisition
Leave a ReplyCancel reply