Nykaa, the beauty and fashion product retailer, has sued its former Chief Business Officer (CBO), Gopal Asthana, now the CEO of Tata Digital’s fashion business Tata CLiq. The company has accused Asthana of breaching confidentiality, misusing proprietary data, and attempting to damage its business.
As per media reports, it also accuses Asthana of having contacted multiple employees of Nykaa who were once his subordinates and convincing them to join Tata CLiq and several of them have already done so in the last one year.
Nykaa, in its petition in the Bombay High Court, claimed that the company had given him a substantial remuneration that included in-stock options and long-term incentives. The company sought a refund of around Rs 19 crore of employee stock option benefits availed of by him along with another Rs 5 crore for loss of goodwill and other business metrics.
The company also sought an order stopping him from using any Nykaa business data in his employment with Tata CLiq. Nykaa has not included Tata Digital as a party in the petition.
The High Court has passed an interim order restraining Asthana from hiring executives from Nykaa for work with Tata CLiq.
Asthana was associated with Nykaa as CBO and held the position for four years. He was also on the company’s board. Nykaa mentioned in its petition that as he held such a high position in the company, he had access to all confidential business data. The Company said that it granted an exception for Asthana to join a direct rival, despite having a non-compete agreement with him. He joined Tata CLiq in June 2023.
