In 18 months, Rahul Yadav lost 230 crore rs. While 150 staff members were not paid, a hotel suite worth Rs 80,000 per day got rented.

Rahul Yadav, the owner of Broker Network (run by 4B Networks), is yet another wealthy Indian entrepreneur who has foolishly spent his money despite not paying his workers.
Constant Overspending

As staff went without pay for months, it is said that he splurged on luxuries like a Mercedes-Maybach and rented a boardroom at the Taj Land’s End for Rs 80,000 per day.

In less than 18 months, his unicorn Broker Network lost more over Rs 280 crore, and since November of last year, over 150 staff have not received pay.

Lender Of Last Resort Is Suing

According to Inc42, he also said that in order to pay employee salaries, he had to turn to his long-term colleagues for personal loans.

One such senior employee, who was required to loan Yadav close to Rs 50 lakh, has accused Yadav of criminal activity.

Additionally, others were urged to take out “advance salary” loans and send the money to Yadav.

The carelessness Never Ends

Employees claimed that despite these expenditures, Yadav never changed his way of living.

One worker was cited as saying, “Yadav told us luxuries like his Maybach came from his earnings at Anarock,” that he was “also looking to buy a Bentley.”

All claims of impropriety at the company have been refuted by Yadav.

Investigative Audit Launched

It’s crucial to know that Yadav’s 4B Networks received a Rs 276 crore investment from All check deals India Private Limited (AIPL), a fully owned subsidiary of Info Edge, along with Rs 12 crore in loan finance.

In response to Yadav’s “repeated failure to provide the information,” Info Edge has now started a forensic examination into the startup in which it has a shareholding.

Yadav founded 4B Networks in 2020; its most recent round of funding totaled Rs 90 crore in September 2022 at a $185 million valuation.