Info Edge Files FIR Against Rahul Yadav for Alleged Fraudulent Activities at 4B Networks Info Edge's subsidiary, Allcheckdeals India Private Limited (AIPL), filed a complaint resulting in an FIR being registered at Mumbai's Bandra Police Station on November 29, 2024.
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Info Edge, the parent company of Naukri.com, has filed a First Information Report (FIR) against Rahul Yadav, the founder of its portfolio company 4B Networks, and others, citing allegations of fund misuse.
The complaint, lodged by Info Edge's wholly owned subsidiary Allcheckdeals India Private Limited (AIPL), led to an FIR being registered at Mumbai's Bandra Police Station on November 29, 2024.
The filing accuses Rahul Yadav, along with Devesh Singh, Pratik Choudhary, and Sanjay Saini, of fraudulent acts involving 4B Networks' funds. Info Edge disclosed this development in a stock exchange filing, highlighting that the case stems from alleged financial irregularities within the real estate-focused platform.
4B Networks, launched in November 2020 by Yadav—also the founder of Housing.com—was designed to connect real estate developers and brokers, streamlining business operations and facilitating loan origination for end consumers. However, Info Edge, which had invested INR 288 crore in the startup, owning a 59% stake, suffered significant losses as the venture unraveled.
Last year, a forensic audit was initiated after 4B Networks failed to provide contractual information regarding its operations and financial transactions. The audit revealed suspicious transactions linked to 4B Realtech Pvt Ltd, a company allegedly established by a Yadav associate.
In August 2023, Info Edge approached the Delhi High Court, which directed arbitration between the parties. Simultaneously, a complaint was filed with the Economic Offenses Wing (EOW), leading to an earlier FIR against Yadav and senior officials for allegedly cheating advertising firm Interspace Communication Private Limited.
Info Edge reported a total loss of INR 532 crore after writing off its investment in 4B Networks. While INR 288 crore was the direct cash infusion, the remainder accounted for the notional loss from the startup's earlier valuation of INR 719 crore.
This latest FIR underscores Info Edge's efforts to address financial misconduct within its portfolio companies and reinforces the group's commitment to transparency and accountability. The case is now under investigation by Mumbai Police.
