A city magistrate court has ordered a FIR against Jasper InfoTech Pvt. Ltd, the owners of e-commerce marketplace Snapdeal, and 11 of its executive including Kunal Bahl, Snapdeal CEO and founder.
Acting on a private complaint filed by a city-based event management company – Dream Merchants – the city court also issued summons to all parties involved to appear in court before May 27.
Dream Merchants is the company that organises Bangalore Fashion Week (BFW). According to their complaint, a three-year contract was signed between Snapdeal and Dream Merchants, wherein the e-commerce company was to sponsor BFW. However, after the first edition of BFW, Snapdeal refused to sponsor the event.
In addition to this, Dream Merchants restricted itself from associating with a Snapdeal competitors due to a clause in the contract. Leaving the organisers with no choice but to raise funds and execute the event on their own, according to Dream Merchants.
Dream Merchants filed a private complaint on May 17 last year because initially police didn’t register an FIR when they approached.
Reportedly, the VIII additional chief metropolitan magistrate, after hearing the case ordered: “There are prima facie materials to show the accused induced the complainant to build a fond hope of association for the editions of Bangalore Fashion Week and made the complainant to believe them and enter into agreements with vendors, hotels/venues, models, designers and other co-workers executing promised editions of BFW and misrepresented the complainant while entering into the sponsoring agreement; and without proper reason terminated the agreement unilaterally, causing huge loss to the complainant.”
Further, the court ordered for a registration of a case against Snapdeal under IPC’s Section 420 (cheating) – this entails a jail term of up to 7 years.