Snapdeal delivers 'fake' products, company founders booked
The police in Kota, Rajasthan, have registered a case against Snapdeal Founders Kunal Bahl and Rohit Bansal after a local Congress leader alleged that the online shopping site sent him fake products.
They were booked for cheating under Section 420 of the Indian Penal Code after businessman Indermohan Singh Honey complained that instead of a Woodland belt and a wallet, he was delivered fakes.
Singh had acted as a spokesperson of the party during the recent Lok Sabha election campaign.
He placed the order on July 17, paying online for it, police said.
In a complaint lodged at the city's Gumanpura police station, the businessman said he suspected the genuineness of the products delivered at his home, and took them to a Woodland showroom.
Kunal Bahl, CEO, Snapdeal
The staff there examined the products and said they were duplicate and fake, Gumanpura station house officer Manoj Singh Sikarwal said.
An assistant sub inspector has been assigned to investigate the case against Snapdeal CEO Kunal Bahl and COO Rohit Bansal.
Indermohan Singh has claimed getting a bad deal from the shopping site in the past as well.
He alleged that some months ago, Snapdeal did not deliver the wrist watch he ordered, while a message from the site claimed it had reached his home. However, he got a refund when he complained.
On Tuesday, New Delhi-based Snapdeal announced that it has raised an undisclosed amount of funding from Anand Piramal, Executive Director of the Piramal Group. This investment has been made by Anand in his personal capacity, the company said in a release.
In its financial results for FY 2018-19, Snapdeal's consolidated revenues grew to Rs 925.3 crore in 2018-19 as compared to Rs 535.9 in 2017-18, marking a sharp increase of nearly 73 percent in a 12-month period. At the same time, Snapdeal’s loss dropped sharply by 71 percent to Rs 186 crore in FY19 from Rs 611 crore reported in FY18.