What legal steps can I take to protect my investment?
I am seeking legal advice regarding a health tech start-up in which I invested, along with 97 other investors, raising over INR 100 crore in January 2024. The founders promised an IPO by April 2024 and assured us of 4x returns, issuing post-dated cheques to reflect these returns. However, the IPO did not occur, and I received post-dated cheques for January 2025. Some investors who were given cheques for September 2024 encountered issues when the company issued a stop payment on those cheques to avoid bouncing. Although the founders are credible, they have asked us to refrain from legal action until the end of 2024, as they are attempting to secure another round of funding. My first question is whether there is anything I can do now to protect my interests while waiting. Secondly, what are my legal options if I choose to take action immediately, and how can I safeguard my investment and enforce the post-dated cheques if necessary?
To protect your interests in the health tech start-up, start by documenting all communications, agreements, and post-dated cheques related to your investment. Connect with the other 97 investors to discuss collective action, which can strengthen your position. Consider sending a formal demand letter to the founders outlining your concerns. Consult a lawyer to advise you on your rights and potential actions. If you opt for immediate action, you can file a complaint with SEBI regarding the failure to deliver on promised returns and the stop-payment on cheques.
Ma'am, you can send a formal demand letter to the company requesting clarity on the IPO timeline and the status of your investment, including the post-dated cheques. It is advised to consult an expert lawyer who will assist you take legal action if found necessary. For further legal assistance contact us on our helpline number.
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