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Snapdeal threatens legal action to counter GoJavas’ Rs 300-crore notice

30 October, 2017

Domestic e-commerce platform Snapdeal has refuted allegations made by GoJavas promoter Anand Rai, asking the logistics firm to either withdraw its legal notice in three days or face legal action.

Rai had issued a Rs 300-crore legal notice to Snapdeal founders Kunal Bahl and Rohit Bansal on 4 October. Two weeks later, he filed a criminal case with the Economic Offences Wing against them for criminal breach of trust, cheating, intellectual property theft, and criminal misappropriation of securities. Rai also told VCCircle that Snapdeal’s founders had unduly benefited from the sale of GoJavas.

Jasper Infotech Pvt. Ltd, which runs Snapdeal, stated that the notice was “a malafide (sic) attempt by Quickdel to create a false dispute over issues that had been amicably and mutually settled between Jasper and Quickdel with the aim to fraudulently coerce and extort monies from Jasper Infotech.”

Rai’s moves can be seen as a counterpunch to Snapdeal’s complaint with the Economic Offences Wing against the former promoters of GoJavas. In a first information report filed in June, Snapdeal had accused Praveen Sinha, Randhir Singh and Ashish Chaudhary of cheating, forgery, conspiracy, criminal breach of trust and misappropriation of funds.

Snapdeal said that Rai signed agreements in 2016 and 2017, releasing it and its logistics arm Vulcan Express from any association with Quickdel. “Anand Rai signed a Release and Settlement Agreement on 11 August 2016, as an annexure to the Amended and Restated Shareholders Agreement dated 11 August 2006. Apart from this Agreement, Anand Rai also signed a Release and Settlement Agreement on 31 March 2017, after reviewing and inspecting the books of accounts and records relating to M/s Quickdel Logistics Pvt. Ltd and thereupon released Jasper/Vulcan and it officials from all past and future liability in relation to the affairs of Quickdel.”

The e-commerce firm has also denied allegations of meddling into the day-to-day affairs of GoJavas, and said that Quickdel consistently failed to deliver services at required levels, which led to customer dissatisfaction and loss of business and reputation.

The Kunal Bahl-led company also refuted GoJavas’ claims of using Quickdel’s trade secrets without authorisation, and called the Rs 300-crore notice an attempt to deflect the ongoing investigation against the founder directors.

Jasper Infotech first became a minority investor in GoJavas in March 2015. Though the investment amount was not disclosed, it was reported to be Rs 120 crore. Later, Snapdeal upped its stake in GoJavas, acquiring an estimated 42% in the firm. It then sold GoJavas to Anand Rai-promoted Pigeon Express Pvt Ltd. in August 2016, where Snapdeal offloaded its entire stake.

GoJavas accuses Snapdeal of using it as experiment firm to run tests, such as 90-minute reverse pick-up and swipe on delivery, and that it also siphoned off money to the tune of Rs 100 crore by raising fraudulent debit notes.

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Snapdeal threatens legal action to counter GoJavas’ Rs 300-crore notice

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