Jabong co-founder Praveen Sinha has denied the allegations of siphoning off more than Rs 100 crore from the company, reported Livemint. The former chief executive officer of the fashion website said he has initiated legal action against a pseudonymous Twitter account holder, Unicon Baba, who revealed on July 7 that Jabong investor Rocket Internet is pursuing a case against Sinha for diverting company funds in the past two years.
Following the tweet, which whipped up a social media buzz around the matter, reports emerged suggesting that the company's investor PricewaterhouseCoopers has conducted an investigation into its dealings. Excerpts of the probe reports were made public by several newspapers.
Sinha said, “Firstly, I have never been informed by Jabong’s investors of any PwC report. I came to know of it recently through a media query, to which I was not even given a day to respond." He added that people at the centre of such false allegations suffer because their reputations take a hit. "Post the report, I have called many people to get more information, and I have come to understand that though there was indeed an investigation, nothing had come out of it to conclude any personal gains [were made by me] as is being alleged by certain quarters," he told the publication.
The investigation has purportedly looked into transactions between the management of Jabong and certain vendors, with its focus on Gojavas, a company previously owned by Sinha. An interim report of the investigation was reportedly submitted to Jabong investor Global Fashion Group in January, while a final report was filed only recently.
This comes at a time when the investors are believed to have found a buyer for the company after looking for one for the past 12-18 months. “As regards the timing of the release, it is indeed extremely unfortunate that this issue is being sensationalised at a time when multiple positive developments were shaping up for the companies in question. I hope these developments will not be adversely impacted by the false and baseless news reports. I am sending you these prefatory thoughts as I am currently travelling,” Sinha added.