Info Edge (India) Ltd, the parent company of jobs portal Naukri.com, has filed a police complaint against Rahul Yadav, founder of its portfolio company 4B Networks, for alleged misappropriation of funds.
Info Edge said in a stock-exchange filing that, based on a complaint filed by its subsidiary Allcheckdeals India Pvt. Ltd, Mumbai Police registered a first information report (FIR) on Nov. 29 against Rahul Yadav and some other individuals in connection with 4B Networks. The FIR alleges that Yadav and others committed “certain fraudulent acts involving 4B Networks’ funds, Info Edge said.
4B Networks, launched in November 2020 by Yadav, connected real-estate developers and brokers while facilitating loan origination for consumers.
Info Edge invested Rs 288 crore in the company through its subsidiary Allcheckdeals to acquire a 59% stake in multiple funding rounds.
The dispute between Info Edge and Yadav escalated last year after 4B Networks allegedly failed to provide Info Edge with mandated details about its operations, management, financial transactions, and related-party dealings.
In June last year, Info Edge initiated a forensic audit and later approached the Delhi High Court in July 2023, leading to arbitration. In August, the company filed a complaint with the Economic Offenses Wing and accused 4B Networks and its founder of conducting “suspicious transactions” with 4B Realtech Pvt. Ltd., reportedly linked to an associate of Yadav.
Info Edge reported a total loss of Rs 532 crore on its investment in 4B Networks, which included a Rs 288 crore cash outlay and a notional loss from the company’s prior valuation of Rs 719 crore before the write-off.