Karnataka High Court: Stays Cult.fit Telang Forgery Proceedings

• The Karnataka High Court has issued an interim stay on criminal proceedings against Cult.fit co-founder Rishabh Telang.
• The proceedings involve allegations of cheating, forgery, and criminal breach of trust, stemming from a complaint by Deepak Poduval, a co-founder of the original Cult Fitness Private Limited.
• Poduval alleges Telang forged documents to transfer the original Cult business and close Cult Fitness Private Limited, diverting assets to Cultfit Healthcare Private Limited.
• Justice Anant Ramanath Hegde granted the stay, citing that the matter is being heard on its merits, with the next hearing scheduled for September 30.
• The Bellandur Police lodged an FIR against Telang on August 6, following Poduval's claims of discovering irregularities in May and June 2026.

The interim stay was granted by Justice Anant Ramanath Hegde, who noted that the matter is being heard on its merits, thus justifying the halt to further investigation until the next scheduled hearing.

The Karnataka High Court has issued an interim stay on criminal proceedings initiated against Rishabh Telang, a co-founder of the fitness platform Cult.fit. The investigation, which involves serious allegations including cheating, forgery, and criminal breach of trust, will be paused following the court's directive. This significant development stems from a case titled Rishabh Telang v. State of Karnataka, where the court's intervention provides a temporary reprieve for Telang.

Justice Anant Ramanath Hegde granted the interim stay on the investigation, indicating that the court is actively engaging with the substantive issues of the dispute. The decision to halt further investigative actions was made on Monday, with the court scheduling the next hearing for September 30. This interim order underscores the judiciary's role in scrutinizing the merits of criminal complaints, particularly in complex corporate disputes.

The criminal proceedings against Telang originated from a complaint filed by Deepak Poduval, who is both Telang’s brother-in-law and a co-founder of the original Cult Fitness Private Limited. Poduval’s complaint asserts that Telang forged documents related to the transfer of the original Cult business and the subsequent closure of Cult Fitness Private Limited. Following this complaint, the Bellandur Police officially lodged a First Information Report (FIR) against Telang on August 6.

Poduval’s allegations detail that he and Telang jointly incorporated Cult Fitness in November 2015, each holding a 50 percent stake as the company's only two subscribers. However, the complaint further claims that Telang subsequently excluded Poduval from the company's management. It is alleged that Telang then diverted the business, its customer base, goodwill, and revenue to Cultfit Healthcare Private Limited, a separate entity incorporated in August 2016. A key accusation in the corporate fraud allegations India is facing is that Poduval's signatures were forged on financial statements and other documents submitted to the Registrar of Companies, specifically to facilitate the striking off of Cult Fitness in 2019. Poduval stated that he only became aware of these alleged irregularities after examining the company’s records in May and June 2026.

The interim stay was granted by Justice Anant Ramanath Hegde, who noted that the matter is being heard on its merits, thus justifying the halt to further investigation until the next scheduled hearing. This judicial stance highlights the Karnataka High Court's readiness to intervene in ongoing criminal investigations when the underlying issues warrant a detailed examination by the court itself.

The upcoming hearing on September 30 will be crucial in determining the future trajectory of the case, which involves a Cult.fit co-founder criminal proceedings stay. The court's decision to stay the investigation, rather than allowing it to proceed unchecked, signals a careful approach to allegations of corporate fraud and founder disputes, particularly when they involve complex financial and documentary evidence.

This ruling indicates the Karnataka High Court's readiness to intervene and stay criminal investigations in complex corporate disputes, particularly those involving allegations of forgery and criminal breach of trust between co-founders. Lawyers advising on corporate governance, founder disputes, or defending against such criminal charges should monitor the full hearing for precedents on grounds for interim stays and the court's approach to evidence in these matters.

Source: Original reporting via legal news outlet