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EOW registers ₹58.29 crore fraud case against 4B Network Pvt. Ltd. and directors

EOW registers ₹58.29 crore fraud case against 4B Network Pvt. Ltd. and directors

The Economic Offenses Wing (EOW) of the Mumbai Police has registered a case against 4B Network Pvt. Ltd. and its directors for alleged financial fraud to the tune of INR 58.29 crore. The complaint alleges misappropriation of funds through deceptive practices.

According to an EOW officer, the complainant, Amitendra Antal, senior vice-president (legal) of Allcheckdeals, a subsidiary of Info Edge based in Noida, Uttar Pradesh, filed the case. The FIR names 4B Network Pvt. Ltd., its directors Rahul Yadav, Pratik Chaudhary, Devesh Singh, Sanjay Saini and other employees.

The charges state that Allcheckdeals invested Rs 288 crore in 4B Network Pvt. Ltd. between January 2021 and January 2023 to develop a broker network application. However, it is alleged that the accused directors and employees conspired to violate the terms of the investment agreement.

The accused allegedly falsified financial records and provided misleading information to ensure continued investments. It is further alleged that INR 58.29 million of the total investment was fraudulently diverted to subsidiaries and affiliates including Aceuser, RY Advisory and Kult App for personal gain.

In response, the EOW filed a case under sections 420 (cheating), 406 (criminal breach of trust), 120B (criminal conspiracy), 477A (falsification of accounts) and 34 (common intention) of the Indian Penal Code.

An EOW officer said investigations are ongoing, including examination of financial records and tracing of embezzled funds. Authorities are working to uncover the full extent of the alleged wrongdoing and to identify any other parties involved.