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Zilingo says investigations on, no one has been found guilty yet

Zilingo says investigations on, no one has been found guilty yet

Zilingo says the ongoing investigations into the alleged financial irregularities and issues of corporate misgovernance have not found anyone guilty yet.

Controversy-hit fashion e-commerce platform Zilingo has said that the ongoing investigations into the alleged financial irregularities and issues of corporate misgovernance have not found anyone guilty yet.
 
“For the avoidance of doubt, no guilt on anyone’s part has yet been determined, as the investigations are still ongoing,” a Zilingo spokesperson told Business Today in an emailed statement.
 
The Singapore-headquartered firm has said that after receiving certain complaints of a serious nature, the board placed the CEO Ankiti Bose on suspension pending a full investigation.
 
“Contrary to claims that have been circulating in the media, this decision was taken jointly by the board and the relevant shareholders pursuant to pre-agreed shareholders’ voting rights and does not reflect the decision of a single shareholder,” the company added.
 
The statement from Zilingo comes after an email was sent by Bose to the company and which was reported earlier by BT. In this correspondence, Bose had delineated several instances of harassment and abuse, with one dating back to as early as August 28, 2020.
 
Also last week, Naushaba F Salahuddin, Zilingo's former head of communications and also the head of the company's POSH committee (Protection of Women Against Sexual Harassment), had written a letter to Zilingo's board In that letter, Salahuddin questioned the involvement of  Sequoia Capital India in company’s decisions and also the board members of Zilingo asking why they were sharing misinformation to the media about the company. Sequoia happens to be one of Zilingo's main investors and owns a 26.5 per cent stake in the firm.
 
After the controversy over Bose erupted, Sequoia Capital India's managing director Shailendra Singh had stepped down from the board.
 
BT has reached out to Zilingo about Salahuddin’s letter and their response is awaited. We have also reached out to Sequoia Capital India regarding the matter. The copy will be updated as and when we get the responses.
 
Zilingo in its statement today, however, has said that Bose brought to the board's attention "certain harassment-related allegations" only after her suspension on March 31.
 
“We wish to reiterate that following her suspension on March 31, Ankiti Bose brought to the Board's attention, for the first time, certain harassment-related allegations. To clarify, no past or present investor nominees on the Board were made aware of the harassment claims, until after she was suspended. Furthermore, these complaints do not allege harassment by any investors or past/ current Board members,” Zilingo's statement read.
 
“Separately, we are disappointed by recent leaks of untrue information to the media in attempts to discredit the investigation, the board, individual investors, and/or employees, even before the investigation has been completed. Despite these attempts, the board remains committed to following due process and concluding the investigation expediently,” the company added.
 
A Sequoia Capital India spokesperson had told BT in an earlier statement, "The team has been part of fundraising discussions together with financial advisors, for Zilingo, just like it is with other companies. The team operates on information shared by the companies. Major investors, including Sequoia India, were shocked and disappointed by the allegations that surfaced in March 2022."
 

 

Published on: May 02, 2022, 4:54 PM IST
Posted by: Bismah Malik, May 02, 2022, 4:28 PM IST