Microsoft’s venture, Builder.ai Creators Charged in Two Criminal Cases

Builder.ai is a startup that focuses on using artificial intelligence to assist in software development. They offer a no-code platform that helps users to build applications and websites rapidly without the need for extensive technical expertise. The platform uses AI-powered tools to automate the development process, allowing users to create complex applications in a fraction of the time it would take traditional methods. Builder.ai has received significant funding and has partnerships with leading technology companies.

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The founders of the AI-focused startup Builder.ai are reportedly facing legal action from the Enforcement Directorate in relation to two separate criminal cases.

According to reports from the Financial Times, one of the cofounders, Sachin Dev Duggal, is under scrutiny for his alleged involvement in a money laundering case, while another cofounder, Saurabh Dhoot, is facing allegations related to a loan fraud case.

The situation involving Duggal revolves around the Enforcement Directorate’s investigation into the now-defunct electronics company Videocon. Back in 2022, Duggal was reportedly summoned by the agency to provide testimony as a witness regarding suspected “unexplained transactions” between his previous company (not Builder.ai) and Videocon.

According to documents reviewed by FT, the Enforcement Directorate (ED) was investigating transactions spanning from 2008 to 2012. These transactions suggested that Videocon had transferred money to a company established by Duggal in India. Allegedly, these funds were then moved to Videocon’s international entities.

When Duggal didn’t attend the ED’s summons, the agency sought a “non-bailable warrant” against him from a Mumbai court, but the request was turned down.

Later in 2023, the ED changed Duggal’s status from a witness to a “suspect” and made a similar request to the Delhi High Court. This time, the request was granted.

Meanwhile, Duggal has reportedly filed an appeal against the warrant and has denied any allegations of wrongdoing. His legal representatives informed FT that the initial court summons were deemed invalid, and reiterated that Duggal was only a witness.

According to statements made by Duggal’s lawyers in front of the Delhi High Court, as seen by FT, they argued that the Enforcement Directorate was misusing its authority and legal provisions by targeting someone who had been fully cooperating with them.

Duggal and Dhoot teamed up to establish Builder.ai, a London-based venture that garnered support from major tech giants like Microsoft and SoftBank’s DeepCore AI-focused fund. Their brainchild, formerly known as Engineer.ai and launched in 2016, aims to revolutionize app and website development by leveraging artificial intelligence, likening the process to something as effortless as ordering a pizza.

Their partnership traces back to their university days in the early 2000s, where they forged a strong bond, as Duggal fondly recalls in past interviews. Throughout Builder.ai’s inception, the pair collaborated closely, bringing their shared vision to life.

After securing new funding in 2018, Duggal publicly expressed gratitude to Dhoot for what he described as “the most defining week of our life” before acknowledging the support of both their wives. With the launch of OpenAI’s ChatGPT sparking a revolution in generative AI, it appeared that Builder.ai was poised for success.

Last year, the startup revealed a new $250 million funding round, with Qatar’s sovereign wealth fund leading the investment round and participation from renowned US tech investors Insight Partners and Iconiq Capital.

Meet Duggal, a proud Brit and the brains behind Builder.ai, where he dons the title of “chief wizard.” With his innovative spirit, he’s earned a spot among London’s tech elite, garnering accolades as one of its most celebrated entrepreneurs. His prowess was duly recognized by EY, who crowned him the UK entrepreneur of the year in November 2023.

But amidst the glitz, there’s a twist. Earlier that year, court documents revealed a blot on Duggal’s reputation. The Indian Directorate of Enforcement eyed him suspiciously in connection with a money laundering probe involving Videocon.

Now, rewind to 2004. Duggal’s journey traces back to the co-founding of Nivio alongside Saurabh Dhoot, as shared on his personal blog and echoed in Indian media reports.

The lawyers representing Builder.ai and its CEO stated that Duggal established the parent company of Nivio without Dhoot. Dhoot was later given the title of co-founder around 2007 or 2008 for the support he had offered to Duggal.

The founders of Builder.ai, a tech startup, are facing legal challenges from the Enforcement Directorate. Sachin Dev Duggal is linked to a money laundering case involving Videocon, investigated since 2022. Despite facing accusations and a “suspect” status, Duggal denies any wrongdoing. Builder.ai, started by Duggal and Saurabh Dhoot, gained notable investments and acclaim. However, Duggal’s past associations raise questions. The duo’s journey from Nivio reveals evolving roles, emphasizing Duggal’s entrepreneurial prowess. Amidst success, legal issues have cast a shadow on Builder.ai’s co-founder.