The Delhi High Court has cancelled a bailable warrant against Sanjiv Gupta, former managing director at now defunct online retailer AskMe.com, issued earlier this month.
The warrant was issued on September 12 on allegation that Gupta had failed to appear before a court-appointed liquidator for Getit Infoservices, which operated AskMe. But Gupta’s counsel told the court that his client had already appeared before the liquidator on April 6 to wind up Getit Infoservices, and presented his case.
“The learned counsel for the official liquidator accepts this. In the circumstances, the bailable warrants issued on 12.09.2017 in the name of Sanjiv Gupta stand cancelled,“ the High Court order said.
ET has reviewed a copy of the order. The HC had in February this year appointed a provisional liquidator for Getit and Justice Siddharth Mridul directed the Serious Fraud Investigation Office to look into allegations of misappropriation of funds and company assets .
In August 2016, AskMeBazaar, a venture of Getit Infomedia services, shut down its operations amidst severe cash crunch, alleged to the unplanned exit of Astro Holdings, its principal investor. The shutdown led to the laying off of 4,000 employees of the company. Later in August, in a letter to MCA Secretary Tapan Ray, BJP leader Subramanian Swamy also proposed providing government assistance to AskMe in order to buy out its 98.5% stake held by Astro Holdings.
During the proceeding in September separate warrants were also filed against two other directors at AskMe’s parent Getit Infoservices – Sidharth Gupta and Grant Scott Ferguson. A co-founder and former CEO at Getit, Sidharth also sat on the board as a representative of the company’s biggest investor, Astro Entertainment Network (AENL).
The process of liquidation for AskMe, had commenced earlier this year. With the cancellation of the bailable warrant against former AskMe Managing Director Sanjiv Gupta, the Delhi High Court may give a push for liquidation process and winding up of the outstanding claims against AskMe’s parent Getit Infoservices.