Info Edge has launched arbitrary proceedings against its investee company 4B Networks, founder Rahul Yadav and senior executive Pratik Choudhary. The proceedings were directed by the Delhi High Court earlier this week.
In June, Allcheckdeals India Private Limited (AIPL), a wholly-owned subsidiary of Info Edge, launched a forensic audit into the affairs of the 4B Networks. The 4B Networks, however, failed to provide crucial information regarding the operations and management, according to Info Edge’s disclosure made to the National Stock Exchange on Wednesday.
According to the AIPL, it made repeated requests to 4B Network to provide all crucial information, including financial details, and related party transactions.
“In light of such failure to provide information and access for the conduct of the Forensic Audit, AIPL filed a petition before the Hon’ble Delhi High Court for interim measures of protection under Section 9 of the A&C Act, and subsequently under Section 37 of the A&C Act against 4B Networks, Mr. Rahul Yadav and Mr. Pratik Choudhary”, according to an Info Edge statement.
On 24th July 2023, the High Court directed the matter to an arbitration process, where both parties agreed to appoint a sole arbitrator, the company’s statement added.
Info Edge has invested Rs 288 crore in 4B Networks through its subsidiary AIPL, which commands a 57.17% stake in the proptech company. Ins February, Info Edge wrote off its entire investment in 4B Networks citing a challenging funding environment but it will have no material impact on its business.
In May, Info Edge also wrote down its entire investment in Bijnis (Bizcrum Infotech Pvt Ltd), constituting Rs 76.65 crore. Info Edge later clarified that it was a technical write-off due to the unspecified liabilities on Bijnis.
