4B Networks rented out an Innov8 office space in Mumbai, but did not pay rent amounting to Rs 1.08 crore, reports Money Control, citing sources.
4B Networks reportedly did not give notice to Innov8 and “packed up the office and left one day”.
The case has been filed by Innov8 under Section 11 of the Arbitration and Conciliation Act after its attempts to resolve the issue failed, the report mentioned.
The two companies are in arbitration under the aegis of Delhi High Court.
Earlier, a vendor of Broker Network filed an FIR against him for alleged fraud and the Economic Offences Wing (EOW) of Mumbai Police has issued a lookout circular for Yadav, and his bank accounts have also reportedly been frozen.
The charges are under Sections 406 (Punishment for criminal breach of trust), 409 (Criminal breach of trust), 420 (Cheating) and 34 (Acts done by several persons in furtherance of common intention) of the Indian Penal Code (IPC).
The FIR was lodged by one of the aggrieved parties, Vikas Omprakash Nowal, co-founder of advertising agency Interspace Communication Pvt. Ltd., naming the accused — Rahul Yadav and Sanjay Sukhdeo Saini — and their company 4B Networks Pvt Ltd.
According to the FIR, Interspace put up a total of 83 advertisement hoardings at different places in Pune for a 4B Networks campaign. Interspace also generated 14 invoices for the work and sent them to the company but the full payment was not made.
Yadav, who founded Housing.com. has denied all allegations related to any wrongdoing at the company.
He is also currently in arbitration with the backer of his startup, Info Edge.
Allcheckdeals India Private Limited (AIPL), a wholly-owned subsidiary of Info Edge, invested Rs 276 crore in Yadav’s 4B Networks and provided debt financing of Rs 12 crore.
After Info Edge wrote down its entire investment of Rs 288 crore in the Yadav-led startup, it initiated a forensic audit into the prop-tech startup in which it holds a stake, as Yadav “repeatedly failed to provide the information”.
–IANS
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