New Delhi/Mumbai, Aug 21 (IANS): In mounting trouble for Broker Network (operated by 4B Networks) founder Rahul Yadav, a vendor of the company has filed an FIR against him for alleged fraud and the Economic Offences Wing (EOW) of Mumbai Police has issued a lookout circular for Yadav, as his back accounts have 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.
The Mumbai Police last Saturday booked two businessmen for allegedly cheating and duping their business associates of Rs 10 crore and indulging in money-laundering rackets over the past one year.
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.
This is not the first time Yadav has been accused of such malpractices.
Yadav reportedly maintained a luxurious lifestyle such as owning a Mercedes-Maybach and hired a boardroom at the Taj Land's End for Rs 80,000 per day, as employees were left unpaid for months.
According to a June report in leading startup news portal Inc42, Broker Network burnt over Rs 280 crore in less than 18 months, while over 150 employees were not paid since November last year.
Other employees were also asked to take "advance salary" loans and transfer the amount to Yadav. Employees alleged that all through this, Yadav maintained a luxurious lifestyle.
"Yadav told us luxuries such as his Maybach came from his earnings at Anarock," and he was "also looking to buy a Bentley," one employee was quoted as saying.
Yadav, who founded Housing.com has denied all allegations related to any wrongdoing at the company.
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.
Info Edge later initiated a forensic audit into the prop-tech startup in which it holds a stake, as Yadav "repeatedly failed to provide the information".