We have invested and found there was no manufacturing activity or quarterly financial report shared.
5 months ago
Hi
We have invested in startup through a online platform last year Dec 2022. After few months Apr 2023 we found there was no manufacturing activity or quarterly financial report shared. When reached the online platform they organized a meeting with the founder and we came to know the startup was waiting for license and offered to buy back the CSOP at 2x by 31 OCT 2023. On 31st Oct we receive email stating the founder can buy back only 50% shares at 20% higher price and the money will transfer to online platform by 17 November 2023, again on 17 Nov we got new email stating the founder account is frozen by the bank due to cyber security reasons and need 2 weeks more time. Not sure if we get our investment back and need to know if we can file a PIL there are 40 people invested above 1lac amt each.
Review the terms of the investment contract or agreement you entered into with the startup. This will help you understand the legal obligations of both parties and the available remedies in case of a breach. Depending on the nature of the dispute, you may file a complaint in the consumer court (if it involves consumer rights) or the civil court. If the startup was raising funds through an online platform, you may also consider filing a complaint with the Securities and Exchange Board of India (SEBI), as they regulate securities markets.