Builder.ai founder Sachin Dev Duggal faces allegations of receiving siphoned funds from the collapsed electronics conglomerate Videocon, according to a criminal complaint filed by India’s Directorate of Enforcement. The probe centers on a scheme where $3.7 million was allegedly funneled through overseas entities, including nHoldings SA, a Swiss firm tied to Duggal. Authorities claim Videocon advanced interest-free loans to Nivio, Duggal’s earlier startup, without formal agreements, followed by an inflated valuation transaction to nHoldings just days after a loan contract was signed.

Duggal, who previously led Builder.ai—a collapsed AI-driven app development platform that raised $500 million from investors like SoftBank and Microsoft—denies wrongdoing. The company’s insolvency in May 2025 followed accusations of fabricated sales data, compounded by a separate U.S. probe demanding internal records from the FBI. Meanwhile, Duggal has pivoted to launching SecondBrain, a new AI venture, as legal battles over his past ventures unfold.