Info Edge files FIR against executives of 4B networks over alleged financial fraud

Info Edge, the parent company of Naukri.com, has filed an FIR against senior executives of its indirect subsidiary, 4B Networks, in connection with accusations of financial fraud. The FIR, lodged at Mumbai's Bandra Police Station, names key figures including Rahul Yadav, Devesh Singh, Pratik Choudhary, and Sanjay Saini, who are allegedly involved in the fraud related to 4B Networks' funds.

The case was brought to light by Info Edge's fully owned subsidiary, Allcheckdeals India Private (AIPL), which has raised concerns about fraudulent activities within 4B Networks. However, Info Edge has emphasized that these legal proceedings will not significantly impact its financial operations. The company had previously provided public updates regarding 4B Networks' situation, addressing concerns on 10 February, 1 June, and 26 July, 2023.

This legal action follows an FIR filed by the Economic Offenses Wing (EOW) of the Mumbai Police in August 2023 against 4B Networks, its founder Rahul Yadav, and senior executive Sanjay Saini, regarding an alleged cheating case tied to the advertising firm Interspace Communication Private Limited.

Earlier, Info Edge had written off Rs 276 crore invested in 4B Networks, citing issues related to the company's sustainability, its high cash burn rate, and challenges in raising new capital. As of September 2022, Info Edge held a 57.17% stake in 4B Networks through AIPL, with the company valued at Rs 1,462 crore (USD 185 million) after securing Rs 90 crore in investment from Allcheckdeals.

This legal setback is the latest for Rahul Yadav, whose first startup faced a distressed merger with PropTiger, and who parted ways with Housing in 2015 after conflicts with investors.