Info Edge Ltd., an investor in beleaguered entrepreneur Rahul Yadav's 4B Networks Pvt., has initiated a forensic audit into the affairs of the company, nearly three months after writing off the Rs 288 crore it invested in the startup.
Info Edge said its subsidiary Allcheckdeals India Pvt., which funded 4B Networks, had asked the company to provide details of financial transactions and other documents as per the shareholders' agreement, it said in an exchange filing on Thursday evening.
"However, 4B Networks has repeatedly failed to provide Allcheckdeals with such information and has also not responded to the information requests by the company on several occasions," it said.
As a result, Allcheckdeals has initiated a forensic audit into 4B Networks and has appointed Deloitte Touche Tohmatsu India LLP as the forensic auditor, who will be supported by Saraf and Partners Law Offices.
In February this year, Info Edge had informed the exchanges that it has written off its investment of Rs 276 crore worth of equity financing and Rs 12 crore of debt financing in 4B Networks, owing to "excessive cash burn, prevailing liquidity issues and significant uncertainty towards funding options".
4B Networks operated Broker Network, a lender and a communication platform between real estate developers and brokers.
This is the second startup by Yadav which hasn't found momentum. His first venture, Housing.com, was eventually merged with PropTiger in a distressed sale after liquidity issues gripped it.
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