Naukri.Com's Info Edge Files FIR Against... - Details

Info Edge, the consumer internet group behind platforms like Naukri.com, has filed a First Information Report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, along with several others, accusing them of misusing company funds.

The FIR, registered on November 29, 2024, by the Bandra Police in Mumbai, follows a complaint from AIPL. It names Yadav, Devesh Singh, Pratik Choudhary, Sanjay Saini, and others yet to be identified. The complaint alleges fraudulent activities involving the misuse of funds from 4B Networks, an indirect subsidiary of Info Edge.

Forensic Audit

Founded in November 2020 by Yadav, 4B Networks aimed to facilitate communication and business transactions between real estate developers and brokers. The platform also assisted in loan origination for end-consumers. Info Edge invested Rs 288 crore in the startup through its subsidiary, ALLcheckdeals India, in early 2021, acquiring a 59 per cent stake in the company.

However, following a lack of transparency from 4B Networks about its operations and financial transactions, Info Edge initiated a forensic audit. The startup failed to provide critical details, including information about management, operations, and dealings with related parties, which were required by the terms of their agreement.

Info Edge Loses Rs 532 Crore

In response, Info Edge sought legal recourse and filed a petition in the Delhi High Court in July 2023. The matter went into arbitration, as directed by the court. In August 2023, Info Edge filed a complaint with the Economic Offense Wing (EOW), accusing Yadav and 4B Networks of executing suspicious transactions with 4B Realtech Pvt Ltd, a company allegedly linked to Yadav.

Info Edge reported a loss of Rs 532 crore, after writing off its investment in 4B Networks. This includes the Rs 288 crore in cash investments, along with an additional notional loss due to a prior overvaluation of the startup, which had been pegged at Rs 719 crore before the write-off.