Orissa High Court orders detailed status report in complaint filed by Nestaway cofounder against Tiger Global, Chiratae, Goldman Sachs

The Orissa High Court on Thursday asked the investigating officer in the criminal complaint filed against Tiger Global, Chiratae Ventures, Goldman Sachs and others by Nestaway cofounder Amarendra Sahu – alleging fraud, forgery of documents, cheating and criminal intimidation – to analyse the documentary evidence submitted by the investors and file a detailed status report.However, the court said that the interim order issued on December 18, 2024, will continue to be in effect. In its interim order, the court had granted protection to the investors and people against whom the complaint was filed, asking the investigating officer not to take any coercive action for the time being.

The matter has been listed for next hearing on February 14.

The court also said that while the case is being heard, it is open for the parties to explore the possibility of settlement.

Sahu had filed a criminal complaint against investors of Nestaway alleging they had promised to pay Rs 11.72 crore to him upon the sale of the home rental platform in 2023 to Aurum Prop Tech but reneged on it.

He claimed that the share purchase agreement between Nestaway and Aurum Prop Tech included a forged document with his signature representing the company. According to the first information report (FIR), he had resigned from the directorship of the company prior to the signing of the sale agreement.

The investors then approached the Orissa High Court, seeking to quash the FIR filed last September with the Economic Offences Wing (EOW) of the Bhubaneswar Police.In his complaint, Sahu, who was also the company’s former CEO, said he was not in favour of its sale to Aurum Prop Tech. He claimed that the Rs 11.72 crore offered by the investors was to induce him to close the deal.

January 9 Proceedings

The single-judge bench of Justice SS Mishra flagged the report filed by the investigating officer, saying it was simply a reproduction of the complaint, and asked for a more detailed status report.

The lawyers for the investors argued that Sahu had earlier made such complaints with the Securities and Exchange Board of India, the Ministry of Corporate Affairs and the National Company Law Tribunal and was now filing a criminal case.

The investors’ counsels also submitted that the accused persons in the complaint were being called to appear before the investigating officer on short notices and sought the court’s intervention.

While the court refused to guide the investigating officer on how to proceed with the matter, Justice Mishra asked the state to analyse the documents submitted by the investors and see whether a case is being made.

“This is a prima facie view… I’m not expressing any opinion. I got an impression that the complaint is being filed (as an) arm twisting technique. Analyse the documents, see if a case is being made out and then we will see,” Justice Mishra said during the proceedings.