Saarthi.ai, a Bengaluru-based Artificial Intelligence startup, is currently embroiled in a series of controversies, including allegations of unpaid salaries and an unusual accusation by its CEO involving the theft of his passport by a former employee. The unfolding drama has put the company’s financial stability and internal operations under intense scrutiny.
The trouble began when Saarthi.ai implemented mass layoffs in September 2022 as part of a cost-cutting strategy aimed at regaining profitability. Since then, the company has allegedly withheld salaries of over 50 employees, with claims dating back to March 2023. Despite these serious accusations, the company’s founder and CEO, Vishwa Nath Jha, has denied the claims, labeling them as a “defamation campaign” against the company.
In a recent interview with Entrackr, Jha made a startling claim that a senior employee who was laid off had stolen his passport, which contained a crucial US visa. “While I managed to reissue a new passport, I am yet to get the US visa again. It’s a long queue,” Jha stated, suggesting that this incident has significantly impacted his ability to travel abroad for critical fundraising efforts.
However, the narrative presented by current and former employees sharply contrasts with Jha’s account. One former employee, speaking on the condition of anonymity, described the situation as dire. “The firm has been holding salaries of more than 50 employees for over a year now and even didn’t reply to legal notices. The founder has been unresponsive and even mentioned that he doesn’t owe us any explanation on multiple occasions,” the employee told Entrackr.
Further complicating matters, Jha has reportedly admitted that Saarthi.ai failed to deposit Tax Deducted at Source (TDS) on behalf of its employees for the last two fiscal years, a significant legal and financial oversight that adds to the company’s woes.
Despite these mounting challenges, Jha remains optimistic about the future of Saarthi.ai. He emphasized that the company is actively working to resolve its financial difficulties and is currently in discussions with investors to raise fresh capital aimed at settling its outstanding debts and liabilities.
The situation at Saarthi.ai highlights the growing tensions within the startup ecosystem, where financial mismanagement and internal disputes can quickly escalate into public controversies. As the company navigates through these troubled waters, the outcome of its ongoing discussions with investors will likely determine its future.