Shocker! Start-up co-founder arrested at 1am after client's 'frivolous complaint'

Shocker! Start-up co-founder arrested at 1am after client's 'frivolous complaint'

Delhi-based warehousing start-up Wherehouse's co-founder Vaibhav Chawla was arrested, following what he described as a "frivolous complaint" by a client.

The arrest took place at 1:00am today, a day after Chawla had announced the company's closure, citing operational challenges and the alleged detention of some employees by cops without any documentation.

Chawla's LinkedIn post on Wherehouse's closure

In a LinkedIn post titled "Shutting down Wherehouse," Chawla announced the end of his venture launched in 2021.

He said, "We started Wherehouse in 2021, with a hypothesis that brands will come closer to customers. This was pre-Quick Commerce."

The company became profitable last year but recent events made it "not worth fighting for."

Dispute with client

The dispute between Wherehouse and the complainant, Curio Lifestyle, began in July 2024. A formal agreement was signed in August for aggressive expansion in Delhi NCR.

However, by November 2024, the client started defaulting on payments.

Despite multiple reminders, the fixed fees and salaries were unpaid till March this year.

By May, Wherehouse was owed ₹1.92 lakh while the brand acknowledged a total stock value of ₹46 lakh.

Trouble with the cops

On June 1, the client claimed money was due to her. However, Chawla refuted the claim based on contract terms.

In the same month, abusive language and threats of criminal cases were exchanged, following which Wherehouse terminated the deal.

After July 15, instead of settling the dues, the client filed a complaint against Wherehouse with the Economic Offences Wing (EOW).

The warehousing start-up submitted its defense later that month, saying the complaint was aimed at avoiding payments.

Police action against Wherehouse employees

By November 16, cops from Nangloi Extension Police Station started calling Chawla, and refused to share any complaint details/documents.

The officers also visited Wherehouse's premises six times between November 17-28 and obstructed work. They allegedly pressured Chawla to visit them alone without a lawyer.

Later, on November 28, an officer allegedly threatened staff and took 10 warehouse workers, described as "innocent, blue-collar workers with meager salaries" to the police station.

They were released only after their families intervened.