Snapdeal faces a legal challenge, amid talks of a merger with Flipkart, A city court in Bangalore has directed the local police to register a case of cheating against Jasper Infotech and has issued summons to 10 executives including Snapdeal CEO Kunal Bahl. The city magistrate court has summoned all the parties to appear before it on May 27.

The court acted following a private complaint by Dream Merchants, an events company, which organises the Bangalore Fashion Week. Snapdeal had promised an association with Bangalore Fashion Week and had restrained Dream Merchants from associating with any other competing brand. The e-commerce company refused sponsorship after the first edition of Bangalore Fashion Week.

Snapdeal has been booked under the Section 420 and 120B of Indian Penal Code (IPC). Section 120B deals with criminal conspiracy and Section 420 deals with cheating.

A report by the Times of India claims that event management company had to raise funds and run the event itself. It added that Dream Merchants had approached the police to register an FIR but were forced to file a private complaint, after the police refused to file a report.

Court has summoned the following executives:

  1. Kunal Bahl: CEO and Co-Founder of Snapdeal
  2. Amit Maheshwari: Senior Vice President Fashion
  3. Abhishek Passi: Vice President, Business Strategy
  4. Mudita Verma: Director, Women’s Clothing, Jewellery and The Designer Studio
  5. Aditi Soni: Head Events (Fashion) & Communications
  6. Anchal Chauhan: Executive
  7. Surendra Mohta: Associate Director, Contracts
  8. Sushma Earaiah: Executive
  9. Puneet Bhaskar: Executive
  10. Arghya Chakravarty: Executive

Meanwhile, Snapdeal termed the case as “baseless allegations”. “The company is yet to see the complaint filed against it. The company will take all appropriate legal steps to defend it and its employees against all baseless allegations,” a spokesperson said.

Merger with Flipkart?

The Economic Times reports that SoftBank is leading the effort to sell Snapdeal to rival Flipkart. Going by the shareholder agreements, three out of the four major stakeholders — SoftBank Group, early backers Kalaari Capital and Nexus Venture Partners, and promoters Kunal Bahl and Rohit Bansal — who control six of the seven seats on the company’s board, will need to approve the merger.