Nykaa, a prominent beauty and fashion retailer, has filed a legal suit against its former chief business officer, Gopal Asthana, who now heads Tata Digital’s fashion business, Tata Cliq. Nykaa accuses Asthana of breaching confidentiality, misappropriating proprietary data, and attempting to undermine its business. Specifically, Nykaa claims that Asthana actively approached several former employees who previously reported to him, encouraging them to leave Nykaa and join Tata Cliq. Some of these employees have reportedly made the switch over the past year.
In its petition to the Bombay High Court, Nykaa stated that it had compensated Asthana generously, including long-term incentives and stock options. The company is now seeking a refund of approximately ₹19 crore in employee stock option benefits provided to him, along with an additional ₹5 crore in compensation for loss of goodwill and other business impacts. Nykaa also requested that the court prevent Asthana from using any of the company’s confidential business data in his new role at Tata Cliq.
The court responded with an interim order prohibiting Asthana from recruiting Nykaa employees for Tata Cliq. However, the lawsuit does not include Tata Digital as a party. Asthana, who spent four years at Nykaa, held a high-ranking position that gave him access to sensitive business information. Despite a non-compete agreement, Nykaa granted Asthana an exception, allowing him to join Tata Cliq after a three-month garden leave.
Asthana, formerly with Shoppers Stop for over 21 years, denied the allegations, stating that they are incorrect and would be addressed in arbitration. He emphasized that the issue is strictly between him and Nykaa, with Tata Digital not involved in the dispute.
Nykaa and Tata Cliq are direct competitors in the fashion, beauty, and accessories sectors, alongside major players like Reliance’s Ajio, Flipkart’s Myntra, and Amazon Fashion. Nykaa has recently projected 20% year-on-year growth in its fashion division, further intensifying competition between these retail giants.
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