Info Edge, the parent company of Naukri.com, has filed a first information report (FIR) against key executives of its indirect subsidiary, 4B Networks, following allegations of financial fraud. The case was initiated by Info Edge’s wholly owned subsidiary, Allcheckdeals India Private (AIPL), over suspected fraudulent activities involving 4B Networks’ funds. The FIR, filed at the Bandra Police Station in Mumbai, names executives Rahul Yadav, Devesh Singh, Pratik Choudhary, and Sanjay Saini among those allegedly involved.
Despite the legal proceedings, Info Edge has stated that the situation will not result in any material financial impact on its operations. The company had earlier addressed concerns regarding 4B Networks through public disclosures on 10 February, 1 June, and 26 July, 2023.
In August 2023, the Economic Offenses Wing (EOW) of Mumbai Police had already registered an FIR against 4B Networks, its founder Rahul Yadav, and senior official Sanjay Saini in connection with an alleged cheating case involving the advertising firm Interspace Communication Private Limited.
Info Edge had previously written down Rs 276 crore in 4B Networks, citing concerns about the company’s sustainability, its cash burn, and the difficulty of raising fresh capital. As of September 2022, Info Edge held a 57.17 per cent stake in 4B Networks through AIPL. The company was valued at Rs 1,462 crore (USD185 million) when it raised Rs 90 crore from Allcheckdeals.
This marks the third setback for Rahul Yadav, whose first startup merged with PropTiger in a distressed sale, and who left Housing in 2015 after disputes with investors.
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