Amarendra Sahu, co-founder of the home rental platform NestAway, has filed a First Information Report (FIR) accusing prominent investors Tiger Global, Goldman Sachs, and Chirate Ventures, alongside fellow co-founders Jitendra Jagadev and Smruti Parida, of fraudulent practices.
The FIR references multiple sections of the Indian Penal Code, including:
- Section 420: Cheating and Dishonesty
- Section 467: Forgery
- Section 468: Forgery with intent to cheat
- Section 471: Using forged documents as genuine
- Section 506: Criminal intimidation
- Section 120B: Criminal conspiracy
Fraudulent Use of Signatures Alleged
Sahu alleges that his signature was fraudulently used to finalize the sale of NestAway to Aurum, a prop-tech firm, for ₹90 crore on June 28, 2023. Sahu claims this occurred after he resigned as a company director on June 19, 2023.
Following the sale, NestAway’s valuation plunged by 95%, a steep decline for a company that had raised $110 million in funding since its inception in 2015.
Disputed Financial Promises
Sahu further claims that key investors assured him, via emails, WhatsApp, and phone calls, of an additional ₹11.72 crore payout beyond his 5% equity share. According to him, the payout was never honored post-sale. The breakdown of the disputed payments is as follows:
- ₹4.8 crore from Tiger Global
- ₹2.8 crore from Chirate Ventures and affiliates
- ₹2.04 crore from Goldman Sachs
- ₹1.81 crore from UC RNT
- ₹0.89 crore from Schroders Adveq
“Believing their words and looking at their stature, I innocently agreed and completed all the work of selling the company,” Sahu stated in his FIR.
Legal Battle Intensifies
According to a media report, The Orissa High Court is set to review the matter on January 9, following earlier petitions filed by Sahu. Responding to the allegations, co-founder Jitendra Jagadev remarked that similar accusations by Sahu were dismissed by the National Company Law Tribunal (NCLT) in Bengaluru. “It appears he is using the legal process to harass and apply undue pressure on these reputed investors,” Jagadev said.
NestAway’s Journey
Founded in 2015, NestAway transformed rental housing in India using technology to simplify property transactions, including search, scheduling, payments, and maintenance requests. Once valued as a pioneering proptech startup, its recent acquisition and controversies have marred its legacy.
This unfolding legal battle highlights the complex dynamics between founders, investors, and stakeholders in high-stakes startups.
