Several vendors who have dues pending from e-commerce and tele-shopping company HomeShop18 are set to take to the streets of Delhi to protest against unpaid dues, yet again. This isn’t their first protest. Ever since Network18 Media and Investments exited from HomeShop18, these vendors allege that the company has suspended operations and has not paid their dues.
Vendors have been agitating since June over the unpaid dues. According to Himanshu Khattar —a vendor who has nearly Rs 2 crore worth unpaid dues, the situation has only worsened in the past three months.
“We have protested in front of the Network 18 office, also at Jantar Mantar, but no one is paying heed. The situation has only worsened. Promoters of the company too, have changed now,” he claims.
There are 200 vendors, and Himanshu claims that they are collectively owed nearly Rs 100 crore.
Vendors have filed various complaints against the company and claim that no action has been taken. According to copies of complaints viewed by TNM, vendors filed a complaint with the Economic Offences Wing (EOW) in Delhi, with the Senior Superintendent of Police (SSP), Surajpur in Noida and have also sent letters to the offices of the Prime Minister, President, Finance Minister and to the Ministry of Corporate Affairs.
The letters dated July 18, 2019, allege that the company was sold to Skyblue Buildwell without prior disclosures to vendors and without paying their dues. It also alleges that the newly appointed CEO Hardik Shah has been unreachable.
“Vendors have been visiting HS18 operating office at FC24, Noida on a daily basis, sat on hunger trike and dharna but no serious response is upcoming. In the backdrop of the above events, vendors suspect a serious fraud in progress with the intent of bringing company to bankruptcy and deprive all operational creditors including vendors, large population of their employees and workmen, their business partners, etc of their legitimate and hard-earned means of livelihood,” the letter states.
Himanshu says that they did manage to reach out to the CEO Hardik Shah in August. “I went to meet him in Ahmedabad, where he promised me that dues will be paid and that he will soon return to Noida and resume operations. But he didn’t turn up. On August 26, seven of us vendors went to meet him but he kept us waiting for nearly 15 days saying he will give us clarity soon, but nothing was given. And from September 6, he stopped responding to our calls and messages,” Himanshu claims.
TNM has reached out to Hardik Shah and is awaiting a response.
On June 6, 2019, Network18 Media & Investments informed the stock exchanges that real estate firm Skyblue Buildwell acquired 82.64% stake in HomeShop18, making it the holding company. It also said in the filing that the company is in the process of changing its corporate as well as brand name. At the time of the acquisition, the Ministry of Corporate Affairs listed Surendra Lunia and Sunil Batra as directors of Skyblue Buildwell. However, the current directors of the company are Suchita Harenbhai Vaidya and Ripal Paragbhai Patel and as per MCA data, both were appointed on July 18, 2019.
According to a Caravan article published in 2016, Skyblue Buildwell is an entity related to Nahata. Nahata and Mukesh Ambani, the promoter of the Network 18 group, have had other business dealings too, according to reports.
Himanshu claims to have tried to reach out to Ripal at her home as well. “We went to the address listed on the MCA website and were surprised to find that it was a rather old and battered apartment. We happened to meet Ripal there, who said she didn’t have much information and told us to speak to her CA,” Himanshu claims.
The vendors are now planning to hold a press conference, and protests this week in a bid to question why their complaints to PMO, MCA, FM, EOW and SSP have been ignored and why the police aren’t filing an FIR.
“We are also planning to hold a candle march at India Gate on Friday and a demonstration at Network 18 office. They were the owners when we did business with Homeshop18 and we want to hold them accountable for our unpaid dues,” Himanshu adds.