Noida-headquartered Info Edge, the parent company of Naukri.com, has filed an FIR against Rahul Yadav, founder of one of its portfolio companies 4B Networks, along with several others for financial irregularities and fund misuse.
We would like to inform you that pursuant to a complaint filed by AIPL, a first information report (โFIRโ) has been registered by the Bandra Police Station (Mumbai Police) on November 29, 2024, against Mr. Rahul Yadav, Mr. Devesh Singh, Mr. Pratik Choudhary, Mr. Sanjay Saini (and unnamed others) in connection with 4B Networks (an indirect subsidiary of the Company), alleging inter alia commitment of certain fraudulent acts involving 4B Networksโ funds
Info Edge said in an exchange filing on 30 November
Founded in November 2020 by Yadav, who previously established Housing.com, 4B Networks connected real estate developers and brokers. The platform also supported loan origination for consumers.
Info Edge invested Rs 288 crore in the startup through its subsidiary ALLcheckdeals India to acquire a 59% stake in the company across multiple funding rounds.
The company initiated a forensic audit last year after 4B Networks reportedly failed to provide essential operational, financial, and management-related information, which was required under its agreement with Info Edge.
Following these findings, the dispute was taken to the Delhi High Court in mid-2023. In August 2023, Info Edge filed a complaint with the Economic Offenses Wing (EOW). It had pointed out “suspicious transactions” between 4B Networks and 4B Realtech Pvt. Ltd., a company allegedly linked to one of Yadavโs associates.
Info Edge has since written off its Rs 288 crore investment and reported an overall loss of Rs 532 crore to factor in the decline in 4B Networks’ valuation from Rs 719 crore. The company disclosed the financial hit in an investor update and attributed it to the complete deterioration of its stake in the startup.
