The Bombay High Court has restrained Vinayak Shrivastav, former chief executive officer of US-based Clippings LLC, from selling, transferring or creating third-party rights over his personal assets in a commercial suit involving alleged diversion of about ₹222.62 crore.
The suit was filed by court-appointed receivers of Clippings, who alleged that funds were siphoned off by Shrivastav and routed to family members and affiliated entities. Justice Arif Doctor held that the company had established a strong prima facie case of fraud and granted interim protection over the assets.
The Court observed that refusing relief at this stage would overlook the central allegations in the case.
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Court Finds Strong Prima Facie Case
The allegations against Shrivastav centre on a loan of $53.15 million obtained from Park View SPV III in October 2025.
Clippings alleged that the loan was procured using forged documents, including fabricated signatures and false bank records.
According to the company, the funds were supposed to be used to refinance earlier corporate debt owed to an investor named Bluestone. Instead, tens of millions of dollars were allegedly diverted to Shrivastav, members of his family and related corporate entities.
The defendants argued that the suit should be dismissed because the court-appointed receivers had suppressed material agreements and corporate emails.
Justice Doctor rejected that defence at the interim stage and noted that Shrivastav had not directly addressed the most serious allegations concerning forgery and fabrication linked to the credit agreement.
Defendants Ordered to Disclose Worldwide Assets
The Court also directed all defendants to file sworn affidavits within 10 days setting out details of their worldwide assets and bank accounts.
They were further directed to disclose six years of tax filings.
The judge noted that the plaintiffs were independent court officers acting without personal interest and were seeking to protect the company’s assets.
The Court said the manner in which the defendants had resisted making disclosures strengthened the need for such information to be placed on record.
The restraint order prevents Shrivastav from selling, transferring or creating third-party rights over his personal assets while the commercial dispute remains before the Court.
₹222.62 Crore Alleged Diversion Under Scrutiny
The receivers are seeking recovery of approximately ₹222.62 crore, which they allege was siphoned from Clippings and transferred through a network involving family members and associated entities.
The Court’s interim findings do not amount to a final determination of the allegations, but the order records that the plaintiffs had made out a sufficiently strong case to justify protective measures at this stage.
Senior Advocate Venkatesh Dhond, along with advocates Rohaan Cama, Kyrus Modi, Prateek Katewa and Shailesh Korpe, briefed by Cygnus Legal, appeared for Clippings LLC.
Senior Advocates Janak Dwarkadas and Zal Andhyarujina, along with advocates Ankit Lohia, Waseem Pangaonkar, Nadiya S, Chirag Naik, Aditi Tiwari, Vaijayanti S, Arurima, Sachin Singh and Rohan Bhatia, briefed by MZM Legal LLP, appeared for Shrivastav and the affiliated defendants.
The case will now proceed with the asset disclosures and other directions issued by the High Court forming part of the ongoing commercial proceedings.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
