From the decrease in valuation, downsizing to failed merger plans, the brand – Snapdeal is really going through tough times. And, now a legal notice of $45.8 million from Quickdel Logistics which operates through its ecommerce logistics subsidiary company GoJavas. The reports stated that Quickdel has sent the legal notice to Snapdeal founders, Kunal Bahl and Rohit Bansal and also the parent company, Jasper Infotech, accusing all of them for criminal breach of trust.
Alleging that Snapdeal siphoned money off GoJavas to its in-house logistics arm, Vulcan Express, Anand Rai, Director of Pigeon Express recently told TOI, “I have sent them a legal notice worth $45.8 Million for criminal breach of trust against GoJavas which resulted in an erosion of value of Quickdel.”
Pigeon Express which has its headquarter in Delhi, is the company that attained Snapdeal’s stake in GoJavas in August 2016 as part of a fire sale. Currently it has 49% of stake in the Gurugram-based ecommerce logistics startup.
In the notice, Rai has likewise blamed Jasper Infotech for taking secret business data like information about employees & service vendors. As per him, the Snapdeal parent stopped its agreement with GoJavas to drive Vulcan Express’ development.
However, Snapdeal has clearly denied all the allegations and called them groundless and unproven. The spokesperson said that both the parties signed a “Release and Settle Agreement” on March 31, 2017, which alleviated Jasper Infotech, its workers and investors from all liabilities that could later emerge out of the share purchase agreement share acquisition & shareholders’ agreement and also the agreement of master logistics services.
Snapdeal was the first between the two companies, which filed an FIR against GoJavas
If we dig deeper, few months earlier Snapdeal filed an FIR against the promoters of Quickdel Logistics. The FIR was issued on June 23 this year with the Economic Offenses Wing of the Delhi Police, which took place around the time when Flipkart was leading due diligence on Snapdeal as a part of their merger plans. The allegation was against the former promoters of Quickdel Logistics, which includes Executive Director, Abhijeet Singh, and former promoters Praveen Sinha, Randhir Singh and Ashish Chaudhary.
As per the records, the FIR was filed with charges on cheating, forgery, conspiracy, criminal breach of trust and criminal misappropriation of valuable securities and for defrauding Jasper Infotech to the tune of crores of rupees.
According to the complaint registered in the year 2014, Quickdel promoters had offered its services to Snapdeal. In light of the portrayals and confirmations given by the promoters of Quickdel, the two organizations went into a Master Logistics Services Agreement (MLSA). The FIR additionally indicated that the representations mentioned at the time of the agreement by Quickdel, were however untrue.
But later it was found by Jasper Infotech that GoJavas management was deceiving them. As per the reports of the fraudulent activities, Snapdeal initiated an inspection into Quickdel accounts and had involved KPMG too. KPMG submitted a report in August 2016 allegedly shed light on the illegal, inflated and excess payments made by Quickdel to non-existent individuals.