Info Edge Initiates Arbitration Against 4B Networks and Founder

31 Jul 2023 , 02:55 PM

Info Edge has launched arbitration proceedings against its investee company, 4B Networks, and its founder Rahul Yadav, along with senior executive Pratik Choudhary.

The Delhi High Court directed the proceedings after Allcheckdeals India Private Limited (AIPL), a subsidiary of Info Edge, initiated a forensic audit into 4B Networks’ affairs.

However, 4B Networks failed to provide crucial information and access during the audit process, as disclosed by Info Edge to the National Stock Exchange.

In response to the information denial, AIPL filed a petition with the Delhi High Court for interim protection under Section 9 of the Arbitration and Conciliation Act, later under Section 37, against 4B Networks, Rahul Yadav, and Pratik Choudhary.

The matter has now been directed to an arbitration process, and both parties agreed to appoint a sole arbitrator. Info Edge invested Rs 288 crore in 4B Networks through its subsidiary AIPL, holding a 57.17% stake in the proptech company.

In February, Info Edge wrote off its entire investment in 4B Networks due to a challenging funding environment. Still, it is not expected to have a significant impact on its business. Additionally, Info Edge wrote down its entire investment in Bijnis (Bizcrum Infotech Pvt Ltd) worth Rs 76.65 crore in May, attributing it to unspecified liabilities on Bijnis.

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