Cult.fit Founder Denies Forgery and Cheating Allegations by Co-founder

Rishabh Telang, a co-founder of the Indian fitness company Cult.fit, which is preparing for an Initial Public Offering (IPO), has denied accusations of forgery, cheating, and criminal conspiracy made by Deepak Poduval, his co-founder and brother-in-law. Poduval filed a police complaint in Bengaluru, alleging that Telang forged his signature on documents to wind up their previous company, Cult Fitness Pvt Ltd, without authorization. Poduval also claims he did not receive payment for the transfer of certain assets and intellectual property to Cultfit Healthcare Pvt Ltd, an entity now part of Cult.fit.

Telang has rejected the allegations, stating that Poduval was fully involved in the transactions and the company's winding-up process. He claims to possess correspondence as evidence and questioned the timing of Poduval's complaint, suggesting "mala fide" intentions and linking it to an ongoing property dispute involving Poduval's wife, who is also Telang's sister.

Cult.fit has stated that neither the company nor its subsidiary is an accused in the police complaint. They maintain that the transaction with Cult Fitness was conducted under proper contractual agreements, with consideration duly paid and acknowledged by the complainant. Cult Fitness was founded in 2015, and its assets and brand were acquired by Cultfit Healthcare in 2016. This legal dispute emerges as Cult.fit prepares for its IPO.

Cult.fit recently filed its draft IPO papers, aiming to raise up to ₹950 crore (approximately $114 million) through a fresh issue and an offer for sale. The company reported a narrowed net loss of ₹251.8 crore in the last fiscal year, while operating revenue increased by 41.5%.