Delhi High Court has referred Info Edge’s INR2.9 billion ($35 million U.S.) impaired investment into 4B Networks to arbitration.

After a forensic audit commissioned by Info Edge to look into financial breaches by 4B Networks did not yield satisfactory results, a petition was filed before the Delhi High Court. Info Edge told media that 4B Networks’ management had failed to provide the information requested by subsidiary AllCheckDeals India Private Limited (AIPL) as part of the audit.

Info Edge has made several investments in 4B Networks through AIPL in the last few years.

“The litigation is in the nature of various claims against the respondents and, as such, it cannot have any financial implications on AIPL or Info Edge. In any event, based on advice from external legal advisors, AIPL believes that it has a strong case on merits,” said the company, adding that there has been no material impact on the business operations of AIPL since the filing of the petition.

The write-off of investments made into 4B Networks eroded Info Edge’s revenue for FY22-23 (the financial year ended Mar. 31), shrinking post-tax profit (PAT) to INR4.1 billion. The news of the impaired investment in 4B Networks was followed by media reports on founder Rahul Yadav’s chequered past, particularly the acrimonious exit from Housing.com.

Info Edge has also been active on the operational front, with the recent appointment of veteran Sanjiv Sachar as an additional director and participation in a funding round of AvatarLife, a metaverse-based gaming platform. Info Edge owns and operates several digital businesses in India and abroad. The company has a team of over 4,500 employees working out of 66 offices in 45 cities across India and the Middle East.

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