Rahul Yadav, the controversial founder of 4B Networks, is currently caught up in multiple legal issues, including two arbitration cases and a criminal case. One of the arbitration cases involves co-working company Innov8, which is seeking unpaid dues of Rs 1.08 crore. The dispute arose when 4B Networks rented office space from Innov8 in Mumbai but failed to make the necessary rent payments. As per the agreement, Innov8 had to undergo arbitration proceedings before pursuing a criminal case. So far, three arbitration sessions have been held, but an arbitrator has yet to be appointed. The next hearing is scheduled for August 28.
Yadav’s delaying tactics persist as 4B Networks seeks additional time for arbitration proceedings not only with Innov8 but also with Info Edge. Info Edge, the majority owner of 4B Networks, has written off its investment of Rs 288 crore in the startup. They initiated a forensic audit after Yadav failed to provide the required information regarding the company’s operations and finances. Yadav refused to allow Deloitte to conduct the audit, leading to arbitration proceedings between Info Edge and 4B Networks.In addition to these arbitration cases, Yadav is facing a criminal case filed by an ad agency over unpaid dues totaling Rs 10 crore. The Mumbai police have interrogated Yadav twice this week, and searches have been conducted at his residence by the Economic Offences Wing. The FIR alleges that Yadav engaged in deceptive practices, resulting in a loss of Rs 10 crore to the complainant’s company.
The case was filed by Vikas Om Prakas Nowal, a member of Interspace Communication Private Limited, and Sanjay Saini, one of the founding members of 4B Networks, is also implicated in the FIR.To summarize, Rahul Yadav, the controversial founder of 4B Networks, is currently facing significant legal challenges, including two arbitration cases and a criminal case. The arbitration proceedings with Innov8 and Info Edge have experienced difficulties, with Yadav seeking more time to comprehend the cases and find a resolution. Allegations of non-payment of dues and salaries from employees and vendors have been leveled against Yadav and 4B Networks.