Ola hires auditor to probe recruitment

Ola

Uber and Ola’s battle for dominance in India is well known , but it appears that Ola is about to suffer some internal turmoil among its executives just like Uber in the US.

According to a report from Factor Daily , senior Ola executive , Yugantar Saikia , has been relieved of his duties for alleged involvement in fraudulent acts for the past two years and pocketing millions in illicit payments.

“An investigation is ongoing , the scope of the fraud goes beyond just recruitment – it includes procurement , administration and IT ,” said a second source. A review and overhaul of processes are underway as part of the clean-up , this source said.

“The estimated value of this fraud looks to be in few million dollars ,” the second source added.

Ola is engaged in a high-stakes battle for the leadership in India’s ride hailing space with Uber , a company that is recovering from a slew of governance and leadership issues. Uber too has had its fair share of troubles from India after Eric Alexander , a senior executive , illegally obtained the medical records of a rape victim.

The unearthing of the potential scam comes soon after the company closed a $1.1 billion round which saw participation from investors Tencent , Softbank and Ratan Tata-backed UC-RNT fund. Ola’s valuation had dropped from a peak of $5 billion to $3.5 billion during the latest funding round.