Nestaway Cofounder Vs Investors: Orissa HC Orders Replacement Of Probing Officer

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SUMMARY

Orissa High Court on Friday (February 14) reportedly issued directions to change the officer probing a criminal complaint filed by Nestaway cofounder Amarendra Sahu against the home rental startup’s investors

Justice Sibo Sankar Mishra issued the order after criticising the current officer for summoning lawyers representing the investors

Justice Mishra also noted that he will continue hearing both sides and review the status report on the investigation during the next hearing

The Orissa High Court on Friday (February 14) reportedly issued directions to change the officer probing a criminal complaint filed by NestAway cofounder Amarendra Sahu against the home rental startup’s investors.

According to an ET report, Justice Sibo Sankar Mishra issued the order after criticising the current officer for summoning lawyers representing the investors.

“Why are you calling lawyers who are acting on someone’s instructions? I won’t tolerate this harassment. Change the investigating officer and inform me,” the bench reportedly said.

Justice Mishra also noted that he will continue hearing both sides and review the status report on the investigation during the next hearing. Previously, the court had encouraged both parties to settle the dispute amicably.

Notably, plaintiff Sahu had alleged that Nestaway’s investors, including Tiger Global, Chiratae Ventures, and Goldman Sachs, had promised to pay him INR 11.72 Cr after the company was sold to Aurum PropTech in 2023. However, they reneged.

Sahu had also alleged that his signature was fraudulently used to sell NestAway to Aurum PropTech for INR 90 Cr on June 28, 2023. As per Sahu, he had already resigned nine days ago as the company’s director.

This prompted Sahu to file a criminal case with Bhubaneswar Police’s Economic Offences Wing in September 2024 against the investors and fellow cofounders Jitendra Jagadev and Smruti Parida.

Meanwhile, the investors have asked the Orissa HC to dismiss the case. During the hearing on February 14, the HC underlined that the court would not interfere with the overall investigation.

NestAway, founded in January 2015 by Sahu, Jagadev, Parida and Deepak Dhar, is an online home rental marketplace. The platform transforms unfurnished homes into managed apartments, which are then rented to pre-verified tenants.

NestAway had raised $110 Mn from investors such as Tiger Global, UC-RNT Fund, Flipkart, and Goldman Sachs, and was pegged at $220 Mn in 2019. Subsequently, the company was sold in a fire sale for a mere $11 Mn by Aurum PropTech in 2023. Later on, Aurum also injected INR 30 Cr in NestAway after its acquisition to stabilise the business.