Indian regulators have lodged a criminal complaint against Builder.ai founder Sachin Dev Duggal, accusing him of profiting from a scheme that siphoned millions from Videocon Industries. The Enforcement Directorate alleges that funds flowed through a chain of overseas entities, with Duggal as the key beneficiary in 2024 court filing today.

Duggal co‑founded Builder.ai in 2018, growing it into a London‑listed AI platform once worth over $1 billion. The company collapsed into insolvency last May after an internal probe uncovered dubious sales and a drastic revenue cut. Lawyers earlier said neither Duggal nor Builder.ai had misreported figures during the pre‑sale period analysis.

The complaint traces back to 2008, when Videocon began giving interest‑free loans to Nivio, Duggal’s cloud‑computing venture, without a formal agreement. A hastily signed contract in May 2011 triggered a Swiss investment of SFr3.79 million in Duggal’s nHoldings SA, followed by a $3.7 million transfer between 2011 and 2014 to overseas entities involved.

A New Delhi court dismissed a warrant that had been issued after Duggal failed to appear as a witness. The FBI has also probed Builder.ai’s collapse, detaining a former executive en route to the U.S. The investigation will shape regulatory practices across India's tech sector, highlighting the risks of financing and the importance of transparent accounting standards for both parties today.