Why Fabindia was sued by founders of its subsidiary Biome
Shantanu Jain and Sania Arora Jain, who started Biome Life Sciences LLP in 2019, which entered the Fabindia floor a year later, said that the retailer was honored by a “put option” by honoring the shareholder agreements (Sha) to sell their shares under a pioneer formula. Biome is home to Fabindia’s Fabessentals Personal Care series.
Lock Inferences
- Founders of Biome Life Sciences are suing Fabindia to implement a “option” substance in Shantanu Jain and Sania Arara Jain (with 49.99%), shareholders (Sha).
- The founders claim that Fabindia has violated Shaha by honoring the output item that valued in 196.16 Crore, based on Biome’s financial -inspected financially.
- Jains called the arbitration in Shaha. In the Supreme Supreme Court of Delhi, they filed a petition to take an urgent order to force Fabindia to invest the entire amount in a safety account and to prevent the retailer from selling assets or the arbitration of Biome’s waiting arbitration.
- Fabindia’s spokesman opposed the allegations, claiming that they were “neglecting their responsibilities” and “deliberate abuse and neglect”.
- They claim that the founders only raise the problem of idol option after they are faced with these alleged tours.
- Both parties nominated their referees (retired Supreme Court judges) and approved the directing of the basic dispute to the fortification.
In accordance with the 9th part of the Arbitration and Reconciliation Law, Jains asked for emergency temporary relief and asked the court to direct Fabindia to invest in a trust account even while continuing fortifications to secure his demands.
Origin
The petition said that Shantanu has more than twenty years of experience in women’s personal care products, and that London is a biochemist trained at the Imperial College. In 2019, they launched the Biome Life Sciences LLP in 2019 to develop science -supported personal care products. His work attracted the attention of Fabindia’s general manager and former president William Nanda Bissell. Bissell first dealt with Jains as a consultant and then proposed an official cooperation.
Biome Life Sciences India Pvt. LTD was founded in May 2020 and held a Fabindia -controlled share. According to the petition, Shaha between Fabindia and the founders included a idol option that allowed the founders to sell their shares to Fabindia or to sell their FAVÖK in a valuation based on EBITDA.
Biome after a decline in work in FY24 La21.6 Crore in the revenues obtained from the activities in 25 financial years with an increase of approximately 28% per year in the petition of the founders. After the tax for the year, profit increased more than 1.5x per year La7.1 Crore. At the end of the FY25, the founders had a 49.99% stake in the company, while Fabindia had the rest.
Conflict
In the court petitions, Jains claimed that they brought new strategies and brought products that have brought new strategies, and claimed that Fabindia did not expand enough support. In August this year, Jains wrote what they wanted to go to Fabindia and valued their shareholders. La196.16 Crore is based on Biome’s controlled financials.
According to the petition, Fabindia had to complete the payment within 15 days, a deadline on September 11th. Instead, they say that Fabindia responded in a delayed way and increases unimaginable disputes under the contract. The petition argued that this behavior was “arbitrary and mala seedling olan designed to delay compatibility and disappoint their exits.
On September 20, 2025, the founders called the Arbitration article in Shaha, issued a notification according to the agreement procedure and nominated his referees. The next day, Fabindia appointed the candidate referee and agreed to direct the dispute to the fortification.
On September 24, the founders carried the Supreme Court of Delhi, which led Fabindia to respond within two weeks. The next hearing will take place on 19 November. Both sides nominate retired Supreme Court judges as their own referees. For Biome’s founders, lawyers will now appoint a presidential referee to complete the court. Mint with a e -mail.
In the court petitions, the founders asked the court to alienate Fabindia’s assets, to dilute Biome’s shareholder, or to prevent Biome from abuse their fixed beds, except for routine business operations. He also sought instructions to force Fabindia to explain their assets, to file Biome’s monthly financial statements and to protect Bissell’s current shareholder.
The founders argue that such measures are necessary to prevent Fabindia’s “distribution of assets”, dilute the shares in the biom, and to present any referee reward in favor.
Defense
Fabindia claims that the founders’ neglect their responsibilities ”and are guilty of“ deliberate abuse and neglect ”. A Fabindia spokesman said that the company chose Jows for their expertise, but when they face delays, they “shrugged their responsibilities and raised the problem of idol option”.
“We have chosen as a partner in its representations to expand the business to the next level with its relevant qualities and history,” he said. “Fabindia gave them a free hand by appointing them as Biome General Manager and COO.
Founded in 1960 by American John Bissell, Fabindia operates as a large special platform that connects more than 55,000 rural crafts to urban markets. Business focuses on retail textile, clothes, home decoration, organic foods and personal care products and currently maintains an important asset with hundreds of stores and international stores in India. The company had previously planned to list the stock exchanges, but in February 2023, he withdrew his plan by referring to uncertain market conditions, but he said he could reconsider a public list in the future.
