A Mumbai Court has reportedly denied the anticipatory bail plea by 4B Networks’ cofounder Rahul Yadav after Interspace Communications’ country head Vikas Nowal filed a complaint with the Economic Offences Wing (EOW) over non-payment of dues to the tune of INR 10 Cr.
As per Moneycontrol, a city sessions court bench rejected the plea on Wednesday (August 30), two days after Yadav moved the bail application.
4B Networks’ cofounder Rahul Yadav and founding member Sanjay Saini had sought relief in connection with an FIR filed against them under various sections of the IPC, pertaining to fraud, cheating and criminal breach of trust.
The matter harks back to February 2022 when 4B Networks empanelled an advertising agency, Interspace Communications, for an outdoor media campaign. As per the FIR, Interspace claims that the company owes INR 10 Cr for installing 83 ad hoardings in Pune from April to August 2022.
In July, Inc42 exclusively reported that Interspace was one of the many vendors that the beleaguered startup had yet to pay.
Nowal first knocked on the doors of the National Company Law Tribunal (NCLT) and then approached the EOW to file an FIR in the matter.
4B Networks has been surrounded by multiple legal tangles, including an arbitration case involving its investor Info Edge. After pumping in INR 288 Cr in the Rahul Yadav-led startup, Info Edge wrote off the entire investment, including INR 12 Cr in debt, as allegations of financial allegation surfaced.
Subsequently, the investor initiated a forensic audit of the startup. As per Info Edge, Yadav refused to cooperate and disclose financial transactions, forcing the investor to approach the Delhi High Court. The case is now in arbitration.
The Delhi HC has barred Yadav, along with another party to the shareholders’ agreement of 4B Networks, Pratik Choudhary, to not sell, transfer or alienate any assets or properties of 4B Networks and to preserve all records and information.
Making matters worse for 4B Networks has been its separate arbitration proceedings with coworking space provider Innov8 over unpaid dues to the tune of INR 1.08 Cr.
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