Cult.Fit Co-Founder Rishabh Telang Moves Karnataka HC To Quash Forgery FIR Ahead Of ₹950-Cr IPO

Cult.Fit co-founder Rishabh Telang has approached the Karnataka High Court seeking quashing of an FIR registered against him over allegations of cheating, forgery, criminal breach of trust and criminal conspiracy.

The proceedings come at a crucial time for Cult.Fit, which has recently filed draft papers for a proposed initial public offering (IPO) involving a fresh issue of up to ₹950 crore.

Justice M Nagaprasanna of the Karnataka High Court on August 25 issued notice to the Karnataka government and Deepak Poduval, Telang's brother-in-law and former business associate, who has lodged the complaint. However, the Court declined to stay the ongoing police investigation.

The FIR was registered by Bellandur Police on August 6 following Poduval's complaint concerning the takeover and subsequent closure of Cult Fitness Private Limited, the original entity associated with the Cult brand. It alleges that documents relating to the transfer of the company's business and intellectual property were forged and that Poduval's signatures were fabricated on documents submitted to the Registrar of Companies for striking off the company in 2019.

According to the complaint, Telang and Poduval had incorporated Cult Fitness in 2015 and were its original subscribers. Poduval alleged that Telang subsequently diverted the company's business, customers, goodwill and revenue to Cultfit Healthcare Private Limited, incorporated in 2016. He has further alleged that the transactions ultimately resulted in the loss of his interest in the original company. Poduval claims that he discovered the alleged irregularities only after examining company records in May and June 2026.

The FIR invokes provisions of the Bharatiya Nyaya Sanhita relating to criminal breach of trust, cheating, forgery, use of forged documents and criminal conspiracy, besides Section 66D of the Information Technology Act.

Telang has strongly disputed the allegations and has argued before the High Court that the criminal proceedings are an attempt to convert an essentially civil and commercial dispute into a criminal case. His counsel, Senior Advocate Sandesh Chouta, submitted that the transactions in question date back nearly a decade and that Poduval was aware of the transfer of trademarks and intellectual property.

Telang has relied upon assignment agreements executed in 2017, contending that Poduval had signed the documents and received approximately ₹1 crore as consideration. The agreements, according to the submissions before the Court, also contained arbitration clauses for resolution of disputes. Telang therefore contends that the existence of contractual arrangements and an agreed dispute-resolution mechanism undermines the criminal allegations.

Another issue raised by Telang is the timing of the complaint. His counsel pointed out that the alleged acts occurred between 2016 and 2019, whereas the criminal complaint was filed in 2026. Telang has also alleged that the proceedings are connected to a separate family dispute involving Poduval and Telang's sister, who is married to Poduval. He has described the allegations as mala fide and commercially motivated.

The High Court, at this stage, has not made any determination on the merits of the allegations. It has only sought responses from the State and the complainant. The Court also noted that the police had issued Telang a notice under Section 35 of the Bharatiya Nagarik Suraksha Sanhita and that there was no immediate apprehension of his arrest.

The litigation assumes additional significance because Cult.fit is preparing for its proposed public listing. The company has filed draft IPO papers proposing a fresh issue of up to ₹950 crore, alongside an offer for sale by existing investors. The criminal proceedings therefore come at a sensitive stage, although there is presently no judicial finding that the FIR would affect the IPO process.