CORRECTED - Snapdeal files police case against former heads of local logistics firm | Reuters

(Fixes throughout to reflect complaint is against some former directors and former management of Quickdel)NEW DELHI Indian online retailer Snapdeal has filed a police complaint against some former directors and former management of a local logistics company, in which it owns a stake, accusing them of defrauding the company of 3.57 billion rupees ($55.37 million), a police report showed.The company, which is backed by Japan's Softbank, accused some former directors and former management of Quickdel of misappropriation, cheating and misleading it, in the police first information report filed in New Delhi on Friday.Reuters has a copy of the police report.

Vineet Rai, the administrative officer at the Gurgaon headquarters of Quickdel, said the company could not immediately comment.A spokeswoman for Snapdeal was not reachable by phone.

Snapdeal said it had bought a 49.99 percent stake in Quickdel in 2014 and early 2015, after the former heads of the logistics company said it would help the two to grow the business. Snapdeal said in the police complaint that it realised later that the former heads of the logistics firm had misrepresented facts.Snapdeal has been at the center of takeover speculation, with its largest backer Softbank seen as keen to sell the company to its larger rival, Tiger Global-backed Flipkart.

In May, television channel ET Now reported that the founders of Snapdeal and one of its early investors, Nexus, have reached an agreement with SoftBank Group that would allow the Japanese firm to move ahead with its plan to sell Snapdeal to Flipkart.Sources told Reuters last month that SoftBank was working to engineer a sale of Snapdeal to Flipkart, as it seeks to play consolidator and take a more active role at a trio of leading start-ups in India.($1 = 64.4800 rupees) (Reporting by Malini Menon; Writing by Sanjeev Miglani; Editing by Ros Russell)

This story has not been edited by Firstpost staff and is generated by auto-feed.


Updated Date: Jun 25, 2017 00:00 AM

Also Watch

Social Media Star: Abhishek Bachchan, Varun Grover reveal how they handle selfies, trolls and broccoli
  • Monday, July 16, 2018 It's a Wrap: Soorma star Diljit Dosanjh and Hockey legend Sandeep Singh in conversation with Parul Sharma
  • Monday, July 16, 2018 Watch: Dalit man in Uttar Pradesh defies decades of prejudice by taking out baraat in Thakur-dominated Nizampur village
  • Monday, July 16, 2018 India's water crisis: After govt apathy, Odisha farmer carves out 3-km canal from hills to tackle scarcity in village
  • Sunday, July 15, 2018 Maurizio Sarri, named as new Chelsea manager, is owner Roman Abramovich's latest gamble in quest for 'perfect football'

Also See