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Updated: FashionAndYou Co-Founder Rahul Narvekar Files Petition Alleging Equity Dilution

Update: Harish Bahl, founder of the Smile Group, has responded saying: "Mr. Narvekar has no interests in the company and the petition filed by him before the CLB is being contested by the company on several grounds, including non-maintainability of the petition itself." Rahul Narvekar, co-founder, and director, brand sourcing, FashionAndYou.com, has filed a company petition against Gold Square Sales India Pvt Ltd, the company that owns and operates FashionandYou, saying that he has reasons to believe that the company is allotting fresh shares against his interest. Zeus Law Associates, counsels for Narvekar, have published a public notice advertisement in the newspaper, warning companies and individuals about the same. Speaking with MediaNama, Narvekar informed that he had sent the company a legal notice in October 2011, and approached the Company Law Board in April 2012, when he came to know that his stake in the company was being diluted. He stated that the CLB had put a stay on issue of fresh shares till a decision is taken and that the next hearing is in December. He alleges that even after the dilution, he'd still have more than 5% stake in the company which makes him a minority shareholder, however, his consent was not taken before the company made major decisions. He also alleges that Bahl had inked a buyout agreement in which Narvekar's stake was bought at Rs 15,000 per share instead of Rs 2,76,000 per share, as per the company's valuation. He is no longer on the board of the company. We…

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