Zomato Faces Insolvency Plea Over Alleged ₹1.64-cr Unpaid Dues
In a shocking turn of events, food delivery giant Zomato is facing an insolvency plea filed by uniform supplier Nona Lifestyle, alleging that the company owes it a whopping ₹1.64 crore. As per reports, Nona Lifestyle claims that Zomato repeatedly delayed payments, returned deliveries, and even resorted to “threats” to avoid paying for the uniforms supplied to its delivery partners and other apparel.
The insolvency plea was filed before the National Company Law Tribunal (NCLT) by Nona Lifestyle, with the supplier seeking to recover the alleged unpaid dues. According to the reports, Nona Lifestyle had supplied uniforms worth ₹1.64 crore to Zomato, but the company has failed to make timely payments.
The supplier has alleged that Zomato had initially agreed to pay the amount in installments, but failed to honor the commitment. Nona Lifestyle has further claimed that despite repeated requests, Zomato did not pay the dues, leading to a significant financial loss for the supplier.
The dispute between Zomato and Nona Lifestyle dates back to 2020, when the supplier had supplied uniforms to the company’s delivery partners. However, Zomato allegedly failed to make payments, prompting Nona Lifestyle to offer discounted rates to other customers to recover its losses.
The insolvency plea has raised concerns about Zomato’s financial health, with investors already worrying about the company’s ability to manage its finances. Zomato’s share price has taken a hit in recent weeks, with the company’s stock price dropping by over 20% in the past month alone.
The incident has also sparked concerns about the working conditions of Zomato’s delivery partners, who are often at the mercy of the company’s financial whims. The uniforms supplied by Nona Lifestyle are an essential part of the delivery partners’ work attire, and the alleged non-payment of dues has left many wondering about the company’s commitment to its employees.
Zomato has faced several controversies in the past, including allegations of mistreatment of delivery partners and pressure to deliver food quickly despite traffic and other challenges. The company has also faced criticism for its business model, which relies heavily on third-party delivery partners, who often struggle to make ends meet.
The insolvency plea filed by Nona Lifestyle is a wake-up call for Zomato, which needs to take immediate action to resolve the matter amicably. The company’s reputation is at stake, and any further delays or allegations of non-payment may lead to a loss of trust among investors and customers alike.
In conclusion, the insolvency plea filed by Nona Lifestyle against Zomato is a significant development that highlights the company’s financial struggles. Zomato needs to take immediate action to resolve the matter and ensure that its delivery partners are paid on time. The company’s reputation is at stake, and any further delays or allegations of non-payment may have serious consequences.
