Citizens' Issues
TinyOwl fires over 110 employees just before Diwali
The troubles of online food ordering start-up TinyOwl, which has Matrix Partners and Sequoia Capital as investors have escalated. The company has sacked over 110 employees from four centres just before the Diwali without any explanation
 
Just as entire India is getting ready for the Diwali crackers, online food ordering start-up TinyOwl Technology Pvt Ltd has rendered its over 110 employees jobless. What is shocking is these sacked employees were not even given time to think and were told upfront to leave the company. This includes 52 employees from Delhi, 25 from Pune, 20 from Chennai and 21 from Hyderabad.
 
According to information received from employees, on 3 November 2015, they were called to the office for a personal meeting with one of the company co-founders. Then it was announced that these employees would no longer work for TinyOwl and were asked to leave. No formalities or procedures like full and final settlement or any severance payout or notice pay were followed and these employees were sacked on the spot. According to the employees, one of the founders is not even contactable and all his numbers are switched off. 
 
We sent an email to Harshvardhan Mandad, one of the co-founders and chief executive of the online food ordering start-up. However, till writing this story, there was no response from Mr Mandad or TinyOwl.
 
In a blogpost on the company site, Mr Mandad wrote, "...we have restructured the organization to increase the organization’s efficiency and productivity, involving eliminations of certain positions from the company. We scale operational resources back from 4 cities and will move to the e-sales platform going forward to support customer needs and supply and logistics requirements."
 
TinyOwl had organised a town hall meeting on 2 November 2015 in Mumbai for all employees, but it was abruptly cancelled.
 
According to a report from the Mint, the company was looking at layoffs due to delays in closing its next round of funding. The layoffs come four days after TinyOwl raised only Rs50 crore from existing investors Matrix Partners and Sequoia Capital. As of September, the company processed 10,000 orders a day. It works with around 150 chefs and registered 500 orders a day with the average transaction value being Rs25, the report said.
 
Mr Mandad, the CEO of TinyOwl, in an email on 23 October 2015 (seen by Moneylife), has announced that the company was on the verge of closing its next financing, which was a positive sing toward growth for everyone. 
 
Last year, Mandad along with Gaurav Choudhary, Saurabh Goyal, Shikhar Paliwal and Tanuj Khandelwal had founded TinyOwl.

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COMMENTS

ramchandran vishwanathan

1 year ago

This is a market waiting to go bust. How come investors keep on pouring money only for market share is a million dollar question

TIHARwale

1 year ago

"As of September, the company processed 10,000 orders a day. It works with around 150 chefs and registered 500 orders a day with the average transaction value being Rs25, the report said".

this it self shows chefs are cooking figures what is this 500 orders or 10000 orders a day with 150 chefs 500 orders means lock up only

Multi-state cooperatives’ are helping transfer funds for Ponzi schemes says Standing Committee
Since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds for Ponzi schemes, the Moily Committee said in its report calling for better regulation 
 
In a startling expose, the Parliamentary Standing Committee on Finance has said, multi-state cooperatives under the Agriculture Ministry, operating without any financial regulatory over sight, have become a conduit for transferring huge amount of money for dubious Ponzi schemes that are ripping off the savings of people across India. 
 
The Committee headed by Congress leader M Veerappa Moily categorically says that since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds.
 
"It seems that the present regulator for multi-state cooperatives i.e. Central Registrar falls under Ministry of Agriculture, which do not have any financial regulatory infrastructure. As number and amount of multi state cooperatives have increased hundred times since 2010, the Committee would suggest that the enforcement aspect with regard to financial schemes operating through multi state cooperatives be shifted to Department of Economic Affairs under Ministry of Finance, since the multi-state cooperatives have now become some kind of a shelter for illegitimate funds, which seemed to have surprisingly escaped the notice of the concerned Authorities, particularly the Central Registrar under Ministry of Agriculture," the Committee said in its report presented to the Lok Sabha Speaker on 7 October 2015. 
 
Interestingly, Nationalist Congress Party leader Sharad Pawar was the Minister for Agriculture in the Manmohan Singh government since 2004. The Central Registrar in the Ministry of Agriculture regulates Multi state cooperative societies.
 
According to the Report, some of the bogus companies running Ponzi schemes, which have transferred their funds and assets to multi state cooperatives include, Samruddha Jeevan Foods Ltd, Sai Prasad, Utkarsh Plotters & Multi Agro Solutions, PGF and PACL, Agri Gold Farm Estates and Saradha Chit Fund.
 
The Moily Committee recommended the government to institute special audit for multi-state cooperatives so that this scam can be unearthed and corrective action taken immediately. "In this regard, the Committee would also suggest that the regulatory regime in respect of multi-state cooperatives should be streamlined and tightened so that they do not become an instrument of diverting and shielding illegal funds from Ponzi companies," the report said.
 
In its deposition before the Committee, the Department of Agriculture & Cooperation was asked about the abnormal increase in multi-state cooperatives. "As and when Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI) has informed to this Department that particular society is involving in the collection of deposits from the public/ nominal members, the concerned Registrar of Cooperative Societies (RCS) of the States have been requested to conduct inspection u/s 108 of the Multi-State Cooperative Societies Act, 2002 (MSCS Act) and also the societies have been directed to refund the amount collected from the nominal members," the Department stated.

User

COMMENTS

Benny Stephan

1 year ago

I have invested for my life time savings for 6 years and now its been more than 2 years and I am yet to get the return from Pacl India Limited. A case against pacl has been running for more than 17 years. The legal proceedings are very slow in India. I would also blame the companies for taking advantage of the judicial system in India. I also blame the regulators Sebi and Sat. I also blame the local police in India. I also blame CBI, ACB. I am an Aam aadmi who has been waiting for years to get the returns and nobody seems to be helping us whatsoever to get the returns. Everyone is trying to delay the returns including the company pacl itself and now the congress leader by calling another special inspection.

REPLY

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 1 year ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Benny Stephan

In Reply to Shirish Sadanand Shanbhag 1 year ago

Thank you Shirish.

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 1 year ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Haryana government drops chargesheet against Khemka on Vadra issue
 In a major relief to senior IAS officer Ashok Khemka, the Manohar Lal Khattar-led BJP government in Haryana has dropped the chargesheet against him in the controversial land deal case relating to Congress president Sonia Gandhi's son-in-law Robert Vadra.
 
Official sources on Wednesday said Chief Minister Manohar Lal Khattar cleared the file to drop the chargesheet against Khemka last week.
 
Khemka was chargesheeted in December 2013 by then Congress government in Haryana led by Bhupinder Singh Hooda for "administrative misconduct" and "exceeding his jurisdiction" in cancelling the mutation of the Rs.58 crore controversial land deal of October 2012 between Vadra's company Skylight Hospitality and realty giant DLF.
 
The cancellation of the land deal's mutation was done in October 2012 by Khemka.
 
The dropping of the chargesheet was based on the reply submitted by the officer to the Haryana government and a personal hearing given to Khemka by Chief Minister Khattar on October 6 this year.
 
Khemka, who had blown the lid off the shady land deals by Vadra and his companies in Haryana's national capital region (NCR) area, was transferred from his post by the previous Hooda government as he was in the process of initiating action against Vadra.
 
Khemka had also ordered an inquiry into the undervaluation of land deals done in four districts in Haryana, adjoining Delhi, by Vadra.
 
Both orders were passed by Khemka after he had been transferred as director general-consolidation and inspector general-registration by the state government. 
 
While he was transferred on October 11, the orders were passed on October 12 and 15. Khemka had claimed that the orders were passed when he had not relinquished charge of these posts.
 
Khemka was also charged with going against service rules by going to the media openly and even criticising government policies. Khemka had freely given TV and other media interviews as Vadra's land controversies came out.
 
Embarrassed by Khemka's actions and statements, the Hooda government had set up a three-member committee of senior IAS officers to look into the issue. The committee, in its report, had stated that Khemka's actions amounted to administrative misconduct and exceeding jurisdiction. 
 
The committee submitted its report even without calling or examining Khemka once.
 
Khemka's 105-page reply to the committee's report, in which he highlighted various other land scams and sham deals and companies associated with Vadra and other influential people, was not accepted by the Haryana government.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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