SUMMARY
- Nykaa has filed a lawsuit against its former CBO, Gopal Asthana, for breach of confidentiality, misappropriation of data, and causing harm to the company’s business.
- The Bombay High Court has issued an interim order preventing Asthana from hiring Nykaa employees for Tata Cliq; Nykaa seeks Rs 24 crore in damages and compensation.
- The legal action highlights the fierce competition between Tata Cliq, Nykaa, and other major players in the fashion, beauty, and accessories markets.
Beauty and fashion retailer Nykaa has filed a lawsuit against its former Chief Business Officer (CBO), Gopal Asthana, alleging breach of confidentiality, misappropriation of proprietary data, and attempts to damage the company’s business interests. The lawsuit was filed in the Bombay High Court, according to reports from The Economic Times.
Nykaa claims that Asthana, who currently serves as the CEO of Tata Digital’s fashion arm, Tata Cliq, recruited several Nykaa employees who had previously worked under him. It is reported that multiple employees have transitioned from Nykaa to Tata Cliq over the past year.
In its petition, Nykaa stated that Asthana, who served as CBO for four years and was a member of the company’s board, was privy to sensitive and confidential business information due to his high-ranking position. The company also highlighted that Asthana received substantial remuneration during his tenure, including long-term incentives and employee stock options.
Responding to the allegations, Asthana commented that they were “incorrect” and would be addressed through arbitration.
The Bombay High Court has reportedly passed an interim order restricting Asthana from recruiting Nykaa executives for Tata Cliq. However, Nykaa has not made Tata Digital a party to this petition.
Nykaa, led by CEO Falguni Nayar, is seeking a refund of Rs 19 crore for the employee stock options benefits availed by Asthana, along with an additional Rs 5 crore for damages related to the loss of goodwill and other business metrics. Furthermore, the company has requested the court to restrain Asthana from using any confidential business data from Nykaa in his role at Tata Cliq.
This legal action comes as competition intensifies among key players in the beauty, fashion, and accessories segments, with Tata Cliq, Nykaa, Flipkart’s Myntra, Amazon Fashion, and Reliance Ajio all vying for market share.
