Vivek Tiwari, co-founder of Medikabazaar, faces serious criminal charges after being accused of orchestrating a Rs 100 crore financial fraud involving forged records, false sales, and corporate deception. As Delhi Police’s EOW launches a probe, this case opens up troubling questions about governance, investor trust, and the startup ecosystem’s accountability.
A Startup’s Fall from Grace: What Triggered the FIR?
Once hailed as a rising force in India’s digital health supply chain, Medikabazaar is now battling a major corporate scandal. The Economic Offences Wing (EOW) of the Delhi Police has filed a First Information Report (FIR) against its co-founder Vivek Tiwari, accusing him of orchestrating a complex fraud worth over Rs 100 crore.
The charges include criminal breach of trust, cheating, forgery, and falsification of accounts. Tiwari, who was recently ousted from Medikabazaar’s board, has been painted as the kingpin of what the FIR terms a deep-rooted criminal conspiracy.
Despite being summoned twice by investigators, he reportedly failed to appear and is believed to have left the country. His legal team has applied for anticipatory bail, citing a pre-scheduled foreign travel plan to China.
The parent company, Boston Ivy Healthcare Solutions, triggered the investigation after filing a regulatory complaint citing malicious and fraudulent activities by Tiwari and 13 others. These actions, it claimed, caused “irreparable harm” to the firm’s financial health and investor confidence.
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Inflated Revenues, Fake Sales, and Financial Misdirection
At the heart of the scandal is a series of damning allegations uncovered through independent audits conducted by Uniqus India, Alvarez & Marsal, and Rashmikant & Partners. These probes revealed that Medikabazaar’s financial statements for FY22 and FY23 were systematically manipulated.
The FIR details how fake sales were booked using accounting software such as Tally and Prota, artificially inflating revenue figures without any real underlying transactions. This tactic allegedly aimed to boost the company’s valuation and mislead shareholders, many of whom paid inflated prices for their stakes based on these cooked-up figures.
Worse still, the company ended up paying excess GST in FY23 as a result of the fake transactions, leading to a recorded loss of Rs 27.99 crore. Tiwari’s alleged role in this misrepresentation extends beyond accounting malpractice—investigators claim it was intentional deception for personal and organizational gain.
Denial and Defense: Tiwari Hits Back
In response to a query from a media house Tiwari defended himself through a written email, claiming the charges are part of a meticulously orchestrated plot by individuals with vested interests. According to him, settlement talks were underway on April 1, but the complaint was pushed to the EOW shortly before his scheduled travel on April 7. The FIR was filed on April 11, prompting Tiwari’s legal team to file for bail while he remained outside the country.
The FIR is nothing more than a tool to coerce a favourable settlement, he wrote, asserting that the allegations are baseless and uncorroborated.
However, the mounting evidence from multiple audit firms, the regulatory filing, and the company’s internal assessment suggest otherwise. The case now hinges on whether the EOW’s probe can translate these findings into prosecutable offenses.
The Broader Fallout
This case marks one of the most high-profile criminal investigations involving an Indian health-tech startup and raises broader concerns about financial governance, board accountability, and investor protection in the country’s booming startup ecosystem. It also highlights the importance of forensic audits, due diligence, and regulatory oversight as venture capital flows into startups aiming for rapid growth—often at the cost of internal checks.
Whether Vivek Tiwari’s claims of being framed stand the test of legal scrutiny remains to be seen. For now, Medikabazaar’s reputation hangs in the balance, along with the fate of crores in investor funds and the credibility of India’s startup governance framework.