Nykaa files a case against Tata Cliq CEO for breach of confidentiality

Tata Clicq Chief Executive Officer Gopal Asthana is reportedly being sued by his former employer NykaaNykaa Datalabs_in-article-icon for breach of confidentiality, misappropriation of proprietary data and sabotage of its business. In a petition filed in the Bombay High Court, Asthana has alleged that he essentially poached employees, and it is reported that Asthana told several Nykaa staffers who worked under him to join Tata Clicq.

Falguni Nair-led beauty and e-commerce major Astana has reportedly demanded the return of Rs 19 crore in stock option benefits and another Rs 5 crore in compensation. Asthana served as Chief Business Officer of Nykaa for four years and was a member of its Board.

According to the report, Naykaa has asked the Bombay High Court to stop the use of Asthana's business data for work at Tata Clicq. The Bombay High Court, in an interim order dated September 4, ordered Astana to end efforts to recruit employees from Nykaa to Tata Clicq. Also, Justice Aqeel Qureshi was appointed as an arbitrator to resolve the dispute between the parties.

Meanwhile, Astana has dismissed the allegations as false and said it will prove them false in arbitration proceedings. The development comes at a time when Nykaa is facing tough competition from Tata Clicq Myntra, Ejio and Reliance Tira in the beauty, fashion and accessories businesses.

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Jeroj

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September 6, 2024

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