Info Edge files FIR against 4B Networks’ Rahul Yadav and others

Info Edge, the parent company of Naukri.com, has disclosed the registration of a First Information Report (FIR) against key executives of its indirect subsidiary, 4B Networks Private Limited.

The case was filed by Info Edge’s wholly owned subsidiary, Allcheckdeals India Private Limited (AIPL), following allegations of fraudulent activities involving 4B Networks' funds, the company said in a stock exchange filing.

The FIR, lodged at the Bandra Police Station, Mumbai, names Rahul Yadav, Devesh Singh, Pratik Choudhary, and Sanjay Saini, among others, as parties involved in the alleged financial misconduct. Info Edge has emphasized that, despite the legal action, there will be no material financial impact on its business operations.

The company had previously addressed concerns regarding 4B Networks through public disclosures made on February 10, June 1, and July 26, 2023.

In August last year, the Economic Offenses Wing (EOW) of the Mumbai Police registered an FIR against 4B Networks, its founder Rahul Yadav, and senior official Sanjay Saini for allegedly cheating the advertising firm Interspace Communication Private Limited.

It is worth noting that Info Edge has already written down Rs 276 crore in the company, as it anticipates that raising fresh money for 4B Networks will be tough and its cash burn is unsustainable.

As per Entrackr’s data, Info Edge had a 57.17% stake in 4B Networks via its subsidiary Allcheckdeals. The Mumbai-based company was valued at around $185 million or Rs 1,462 crore (post-allotment) when it raised Rs 90 crore from Allcheckdeals in September 2022.

For background, 4B Networks is Rahul Yadav's third startup to falter after initial success. His first venture merged with PropTiger in a fire sale, and he left Housing in 2015 after disputes with investors.