Allahabad High Court Stays Arrest Of 'Kalaari Capital' MDs Vani Kola & Rajesh Raju In Cheating Case

A bench of Justice Ajay Bhanot and Justice Garima Prashad passed the order in a criminal writ petition filed by M/s Kalaari Capital Partners II and others challenging the July 2025 FIR lodged at Gautam Budh Nagar Police Station under Sections 406, 420, 467, 468, 471, 34 IPC.

The FIR lodged by Gopaisa Netventures Pvt. Ltd. accuses MDs of Kalaari Capital and Directors of Magzter Digital Pvt. Ltd. of defrauding it in a commercial transaction. Gopasia has also alleged a wider conspiracy which involves money laundering.

The FIR alleges that Gopasia had been working with Magzter Inc., the US-based digital newsstand, and its Indian arm Magzter Digital Pvt. Ltd. since early 2019 to run online promotional campaigns for the Magzter app and website and even though the campaigns continued until September 2022, Magzter stopped clearing payments and left invoices worth more than ₹1.62 crore unpaid.

Against Kalaari and its MDs, it has been alleged that they funded Magzter Digital Pvt. Ltd. and hence, they were also liable to pay the amount.

Before the HC, Kalaari's MDs argued that there is no privity of contract between them and the first informant and that civil wrong had been converted into the criminal case only to leverage the criminal proceedings in the civil dispute.

On the other hand, the AGA filed a short counter affidavit stating that the first informant as well as the petitioners are not cooperating in the investigations.

Directing both the parties to cooperate in the police investigation and seeking counter from state and private respondent, the Court posted the matter for hearing after four weeks.

In the interim, the Court passed the following order grating relief to the petitioners:

"Till the next date of listing or till the filing of the charge sheet, whichever is earlier, the arrest of the petitioner pursuant to the impugned first information report dated 17.07.2025 registered as Case Crime No. 115 of 2025, u/s 406, 420, 467, 468, 471, 34 IPC, Police Station Sector 126, District Commissionate Gautam Budh Nagar shall remain stayed".

Senior Advocate IK Chaturvedi assisted by Advocates Vineet Sankalp and Shantanu Singh, appeared for the petitioners