Smartworks Faces Criminal Extortion Attempt to Block IPO
Delhi Police are investigating a serious criminal case involving co-working space company Smartworks Coworking Spaces Limited. The case centers on allegations of extortion using forged government letters and stolen tax documents. The goal was to block the company's initial public offering listing.
Estranged Family Members and NGO Accused
According to a First Information Report registered on December 8 last year, two estranged members of the Delhi-based Sarda family stand accused. Govind Sarda and his son Aditya allegedly collaborated with NGO Infrastructure Watchdog. Together, they attempted to extort money from Smartworks.
The FIR states they threatened to block the company's IPO listing scheduled for July 17, 2025. They used fake and stolen documents to pressure the company's promoters.
Forged Government Documents Created
The accused allegedly created multiple forged government letters. One letter purported to come from the Ministry of Corporate Affairs. Another non-existent letter supposedly issued by SEBI also appeared in the case.
Govind and Aditya Sarda sent a fabricated SEBI letter dated November 27, 2024 to the ministry. This letter falsely claimed Smartworks had not made certain disclosures. The FIR specifically mentions forgery of official documents from the Regional Director under the Ministry of Corporate Affairs.
High-ranking government officials were impersonated during this criminal activity. The accused initially created and camouflaged fake email IDs to carry out their plans.
Confidential Tax Documents Stolen
Smartworks has made additional serious allegations in the FIR. The NGO, along with Govind and Aditya, allegedly smuggled internal tax documents belonging to the company. These confidential Income Tax Department files are not normally shared with outsiders according to established procedure.
NGO secretary Anil Kumar, along with the Sarda family members, used these stolen documents to approach Smartworks. They threatened to file malicious complaints and raise damaging allegations unless money was paid.
When Smartworks refused their demands, the accused approached SEBI with these documents. Their apparent goal was to arm-twist the complainant company into compliance.
Timeline of the Alleged Conspiracy
The criminal conspiracy appears to have begun in or before March 2025. The fabricated letter surfaced at the time of the IPO to cause maximum injury to Smartworks and its shareholders.
The case stems from an existing dispute between the NGO and Smartworks. Infrastructure Watchdog even approached the Supreme Court against the Securities Appellate Tribunal's decision to green light the IPO.
Supreme Court Hearing Revealed Forgery
The foundation for the FIR was laid last August during a Supreme Court hearing. The NGO presented to the court an alleged letter written by the ministry to SEBI dated February 12, 2025. This letter discussed probes against Smartworks promoters.
However, Smartworks counsel showed a crucial Right to Information Act reply to the Supreme Court. This reply stated clearly that no such letter had been sent by the ministry. This revelation exposed the letter as a forgery.
Current Investigation Status
The Intelligence Fusion & Strategic Operations unit of Delhi Police is now probing the matter. This specialized unit handles complex criminal cases requiring detailed investigation.
Smartworks operates as a co-working space company providing shared office environments. Professionals from different companies, freelancers, and start-ups work together in their facilities.
The criminal case highlights serious concerns about corporate extortion attempts using forged documents. It also raises questions about the security of confidential government and tax documents.
