Agritech startup Mooofarm has lodged a police complaint against Vineet Bhati, the company’s former head of finance, for allegedly embezzling funds from the company’s accounts for personal gains. The complaint was filed after the alleged embezzlement came to light in early July 2023 and is said to have been going on for the past 3-4 months.
Bhati Counters Allegations with Claims of Total Embezzlement by Mooofarm’s Management
Responding to the allegations, Vineet Bhati has made counter-accusations, claiming that the “management of Mooofarm Pvt. Ltd.” is responsible for a total embezzlement of INR 45 Cr. Bhati has also stated that he filed a police complaint on July 13, 2023, a week before Mooofarm’s complaint. He alleges that the company’s management engaged in fraudulent activities involving unauthorized investments and lost company funds in stock and derivatives trading since January 2021.
Allegations of Fake Revenue and Misleading Investors
According to Bhati’s complaint, the management of Mooofarm used the personal bank accounts of other employees from August 2021 to June 2023 to create a fake revenue of INR 130 Cr. He further claims that investors were misled by these figures, as evidenced by an email sent to fund managers of Mooofarm’s key investors, two days after the company’s own complaint was filed.
Mooofarm- Official Statement on the Embezzlement
Mooofarm has confirmed the embezzlement incident in a statement, stating that the company filed a police complaint against its Head of Finance for unlawfully transferring an unspecified amount of money from the company’s bank account to his personal account for high-risk trading activities. The statement also mentioned that the employee in question has confessed to the fraud via email.
Bhati’s Response Claims Misuse and Abuse by Mooofarm Management
In his response, Bhati alleged that the management transferred shares in their name and removed him from the post of Director, making him a Financial Head, to gain financial benefits and personal gains. He also accused Mooofarm’s founders of intentionally making investments to pay off debts and restart their previous company, AVTEG Pvt. Ltd., which is under recovery proceedings.
Implications and Ongoing Developments
The alleged embezzlement and the subsequent response from both parties have raised questions about Mooofarm’s future. As investigations continue, law enforcement authorities conduct independent inquiries before registering an FIR (first information report). The company has informed its investors, including Accel and Aavishkar, about the situation. The company is still determining the exact amount of the alleged embezzlement and the potential impact on Mooofarm’s operations.
