Nirmalaya Wellness, a startup featured on Shark Tank India Season 2 in February 2023, is currently embroiled in a potential legal battle following allegations of cheating and stake misappropriation. The organic incense and fragrance brand, known for its sustainable practices, gained attention on the show despite not securing funding from the judges. However, the recent controversy has thrown a wrench in the company’s plans for expansion.
According to an FIR filed by Vikas Garg, he claims to be the original founder of Nirmalaya Wellness and accuses the current founders, Bharat Bansal, Surbhi Bansal, and Rajeev Bansal, of forcefully taking over the startup and ousting him. The FIR, registered last week, outlines the timeline of events leading up to the dispute and sheds light on the intricate relationships between the parties involved.
Bharat Bansal, CEO of Nirmalaya Wellness, refutes Vikas Garg’s allegations and asserts that he and Surbhi joined the company as consultants through Banbros Consulting. He claims that Vikas voluntarily left the startup after suffering losses and that the allegations surfaced only after Nirmalaya gained fame. The situation is further complicated by the fact that Vikas and Bharat are relatives, indicating a potential family feud.
The FIR and statements from both parties reveal conflicting accounts of the company’s formation and ownership. Bharat contends that Vikas transferred his shares to Rajeev, who then transferred them to him, while Vikas alleges that his shares were forcibly taken, with his signature allegedly forged on a resignation letter. The disagreement culminated in a violent altercation at Nirmalaya’s factory, leading to both parties filing complaints against each other.
Ownership disputes are not uncommon in the Indian startup ecosystem, with claims of shareholding and founder disputes emerging from time to time. While the police investigation will shed more light on the matter, it remains to be seen how this controversy will impact Nirmalaya Wellness and its future prospects. Such disputes can often have far-reaching implications for startups, potentially affecting investor confidence and hindering growth.
As the investigation unfolds, Nirmalaya Wellness finds itself caught in a tangle that could significantly impact its trajectory. It serves as a reminder of the challenges startups face in maintaining transparent and equitable ownership structures, underscoring the importance of proper documentation and legal frameworks in safeguarding the interests of all stakeholders.
