Online sellers move courts against Snapdeal for non-payment of dues

Online sellers move courts against Snapdeal for non-payment of duesET TECH

Some sellers on Snapdeal have filed cases in different courts in the National Capital Region (NCR) for alleged non-payment of dues, barely a year after a failed merger talks with larger rival Flipkart, which prompted the Gurgaon company to go solo with its Snapdeal 2.0 strategy.

At least two sellers have dragged Snapdeal’s owner Jasper Infotechto courts for non-payment of dues.

Bengaluru-based Veepee Electronics, that sold consumer durables of brands such as Bajaj, Hitachi, Whirlpool, Voltas, Philips, IFB, Panasonic and others since 2015, has filed a criminal case in a Gurgaon court against the firm, according to court documents seen by ET.

“They should be forced to clear dues of approximately Rs 5 crore due to the complainant. Furthermore, other article/materials/goods worth approximately Rs 15 crore lying with them be recovered and restored to the complainant,” the petition requested.Snapdeal founders, Wharton alumnus Kunal Bahl and IIT Delhi graduate Rohit Bansal, are also party in the case. Another case has been filed in the Delhi High Court by Spacewood Furnishers for recovery of Rs 18 crore from Jasper.

See All 4 Challenges

Spacewood’s lawyer Garvesh Kabra said there was provision for appointment of an arbitrator in the event of any dispute between the two parties. “We requested for an arbitrator, but they (Jasper) did not appoint, so we had to move court,” Kabra. He said Jasper failed to make payments to Spacewood for goods sold through the platform, and Spacewood alleges that it neither received money nor the goods that were returned by buyers.

“At Snapdeal, payments towards our seller partners are processed, paid and guided by clearly stated policies. As per the records of the company, the claims pertaining to the two instances cited are not payable,” said a Snapdeal spokesperson.

“Further, one of the claims made is pending arbitration, and the other represents an attempt by the claimant to misuse police machinery to address commercial disputes. Snapdeal will oppose the claims and defend itself in the appropriate forums,” the spokesperson said.

After merger talks with Flipkart failed, the firm was expecting to be financially self-sustainable.

But Jasper Infotech, which owns and operates online marketplace Snapdeal, saw a 75% jump in loss for the financial year ended March 2017. Loss for fiscal 2017 came in at Rs 5,142.8 crore, compared with the previous financial year, according to the audited results filed by it with the Registrar of Companies.

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