The Economic Offences Wing (EOW) of Mumbai Police has taken legal action against senior officials of Info Edge subsidiary 4B Networks, specifically Rahul Yadav and Sanjay Saini. The allegations suggest that they defrauded an advertising firm of over Rs 10 crore. A police official confirmed this development, revealing that the complainant is Vikas Om Prakas Noval, a director at Interspace Communication based in Rajasthan.
Allegations of Deceptive Practices
According to Noval’s statement to the law enforcement, his company, Interspace Communication, incurred a loss exceeding Rs 10 crore due to deceptive practices by Yadav’s company. The alleged actions took place in 2022, involving contracts between 4B Networks and Interspace Communication for services such as installation, printing, hoarding placements, and other advertising-related functions.
4B Networks Unsettled Payments and Formal Complaint
After the completion of the contracted services, Interspace Communication sent invoices to 4B Networks for payment. While a partial payment was received initially, the outstanding dues were not settled. Noval lodged a formal complaint with the EOW, prompting the registration of the First Information Report (FIR) on Saturday.
Accusations and Legal Proceedings
The FIR names Yadav, the director and Saini, a founding member of the management, along with their company, as accused parties. The charges include sections 420 (cheating) and 406 (breach of trust) of the Indian Penal Code (IPC). However, no arrests have been made in connection with the case. Ongoing investigations are underway to uncover more details.
4B Networks Background and Resolution Attempts
4B Networks, initially a proptech company facilitating communication between brokers and real estate developers, has been marred by financial issues. Info Edge took action by starting a forensic audit. The company refused to share financial data. This refusal caused Info Edge’s Rs 288 crore investment to be written off completely. Later, following the Delhi High Court’s orders, Info Edge and 4B Networks decided to select an arbitrator. The purpose is to mediate and resolve their growing disagreement.
