Cult.fit cofounder Rishabh Telang moved the Karnataka High Court to quash an FIR alleging forgery and criminal conspiracy. The case highlights a legacy dispute just weeks after the company filed its DRHP for a public listing. It pits Telang against his brother-in-law and cofounder Deepak Poduval over a 2016 asset transfer.
How We Got Here
Poduval filed the FIR against Telang in August, alleging he forged signatures to wind up their original company, Cult Fitness. This dispute dates back to 2016, when assets and IPs were transferred from Cult Fitness to Cultfit Healthcare, a subsidiary of the current IPO-bound entity.
The Numbers
- Telang is accused of forging Poduval's signature on documents like a board resolution and shareholder consent to wind up Cult Fitness.
- Poduval claims his 50% shareholding in Cult Fitness was "extinguished without a rupee of consideration."
- The Karnataka High Court did not order a stay on the investigation, but sought responses from Poduval and the State.
- Police issued Telang a notice under Section 35 of the Bharatiya Nagarik Suraksha Sanhita, preventing immediate arrest.
- The next hearing for the matter is scheduled for September 2.
What Happens Next
🇮🇳 Why This Matters for India
For IPO investors watching Bangalore's health tech sector, the ongoing legal battle introduces significant pre-listing uncertainty for Cult.fit's corporate governance.
The Take
This situation reminds us that even long-dormant cofounder disputes surface at the worst times for public market aspirations. Investors should consider the real risk of this legal fight impacting Cult.fit's IPO timeline and valuation.
Source:
Inc42 ↗