Saarthi AI, an artificial intelligence startup headquartered in Bengaluru, finds itself embroiled in a complex web of financial and legal troubles.
The company, which recently underwent mass layoffs in pursuit of profitability, now faces allegations of unpaid salaries and an unusual claim from its CEO, Vishwa Nath Jha.
Background: Mass Layoffs and Financial Strain at SaarthiAI
In September 2022, Saarthi AI implemented significant layoffs, citing “investor pressure” and the urgent need to stabilize its finances. The decision was aimed at achieving profitability, but it has had lasting repercussions.
Former employees have consistently accused the company of withholding their salaries since March 2023. Jha, however, denies these allegations, labeling them a “defamation campaign” against Saarthi AI.
The Passport Theft Allegation
Adding further complexity to the situation, CEO Vishwa Nath Jha recently made a startling claim: a senior employee stole his passport, which included a crucial US visa.
Vishwa contends that this theft has hindered his ability to travel abroad and secure new funding for the company. While he managed to obtain a new passport, the process of reacquiring the US visa remains a challenge.
Current and former employees present a different narrative. Over 50 employees are still awaiting their salaries, and legal notices have gone unanswered.
An anonymous ex-employee expressed frustration, stating, “The founder has been unresponsive and even mentioned that he doesn’t owe us any explanation on multiple occasions”.
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Tax Deducted at Source (TDS) Issues: Vishwa has also admitted that Saarthi AI failed to deposit TDS for its employees over the past two fiscal years. Despite these admissions, he remains hopeful about the company’s prospects.
Summing Up!
As Saarthi AI grapples with unpaid salaries, financial strain, and allegations of mismanagement, the once-promising startup now faces a critical juncture.
The theft of CEO Vishwa Nath Jha’s passport—containing a vital US visa—adds an unexpected twist to the narrative. Whether the company can regain its footing and restore trust among employees and investors remains uncertain.
As the legal battles unfold, the tech community watches closely, hoping for a resolution that balances justice and the startup’s survival.
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