New Delhi, India

Vishwa Nath Jha, the founder and CEO of Saarthi AI claims that his passport containing an American visa has been stolen by an ex-employee after the mass layoff conducted last year. This comes amid allegations that the company has withheld the salaries of several employees since March 2023. 

Advertisment

Jha told the news agency PTI that the company had been forced to lay off several employees to become profitable. He said investor pressure was the main reason behind the mass layoffs. Now, the CEO claims that his passport was stolen by a former employee and it had this visa to the United States. 

Speaking to the website Entrackr he claimed that a senior employee stole his passport, making it difficult for him to travel abroad and raise funds for the already troubled firm. Jha said, “While I managed to reissue a new passport, I am yet to get the US visa again. It’s a long queue.” 

Also Read | Money-Wise: How can Indian market investors be saved from sudden crises like Hindenburg-Adani case?

Advertisment

He also rejected the allegations against the company and said no salaries have been withheld calling it false claims to defame the company. Jha said, “We’re planning to fill key positions as it negotiates deals [business] with several banks and NBFCs.”

Last year in September, Saarthi AI reportedly conducted a mass layoff which reduced the company’s workforce to 40 employees. A report by Entrackr citing several employees said they hadn’t received their pending salaries. 

A former employee told the website: “The firm has been holding salaries of more than 50 employees for over a year now and even didn’t reply to legal notices. ​​The founder has been unresponsive and even mentioned that he doesn’t owe us any explanation on multiple occasions.” 

Advertisment

Also Read | Mars to acquire Pringles maker Kellanova for nearly $36 billion

The company’s CEO accepted that they are not depositing the TDS of employees for the last two fiscal years.

Jha said, “The startup is still not generating surplus cash to clear long-standing dues. We have been transparent in our communications with the concerned ex-team members. We are working hard to become operationally cash flow positive by Q2 of 2024 to sustain company operations and support our current team members. Additionally, Saarthi.ai is actively in talks with investors to raise fresh capital to address outstanding debts and liabilities.” 

(With inputs from agencies)