Founder and former promoter of gaming startup Smaaash Entertainment, Shripal Morakhia, has alleged professional misconduct and harassment of employees by the company’s resolution professional (RP), according to a report by Mint. Morakhia alleged that 82 employees resigned in March due to the harassment, including multiple legal cases filed against them. Smaaash, which was hit by multiple Covid-19-induced lockdowns in 2020, was admitted for insolvency in May 2022 after defaulting on INR 292 crore to Edelweiss Asset Reconstruction Company.
Morakhia has also raised allegations of corporate governance issues, including that the CEO and the RP conspired to get significant pay hikes. According to the article, the founder and former promoter of gaming startup Smaaash Entertainment, Shripal Morakhia, has raised allegations of professional misconduct and harassment of employees against the company’s resolution professional (RP), Bhrugesh Amin. Morakhia alleged that 82 employees tendered their resignations this month due to the alleged harassment, which includes the filing of multiple legal cases against the employees. Morakhia has also raised allegations of other corporate governance issues in the company, including accusations that Smaaash’s CEO Shirish Kotmire conspired with Amin to get significant pay hikes.
Smaaash was established in 2012 by film director and producer Morakhia as a gaming arcade operator with multiple digital entertainment centers for football, cricket, go-karting, and other such recreational activities. The startup was hit by multiple Covid-19-induced lockdowns in 2020, which led to reports of it going bust. However, after the pandemic-led restrictions were lifted, the startup’s revenue started improving. The Sachin Tendulkar-backed company was admitted for insolvency in May 2022 by the National Company Law Tribunal (NCLT) after a default of INR 292 Cr to Edelweiss Asset Reconstruction Company. Smaaash’s investors included the likes of Sixth Sense Ventures, Avendus Capital, and some major high-net-worth individuals (HNIs). Currently, Smaaash has a presence across more than 20+ cities in India, including Bengaluru, Mumbai, Hyderabad, Delhi-NCR, Madurai, and Siliguri.