Delhi founder arrested at 1 am after client's 'frivolous complaint'. Wherehouse shut down
A dispute with a client over unpaid dues escalated for months to culminate into the police action, revealed Wherehouse co-founder Vaibhav Chawla. According to reports, 10 'innocent, blue-collar workers with meager salaries' were taken to the police station and released only after their families intervened.
The co-founder of Delhi-based warehousing startup Wherehouse, Vaibhav Chawla, was reportedly arrested at 1 am on Tuesday following what he described as a “frivolous complaint” by a client. The arrest comes a day after Chawla announced the shutdown of Wherehouse, citing operational challenges after a few of his employees were allegedly detained by the police without documentation.
According to Chawla, the matter, which started as a dispute between the startup and the complainant, escalated, culminating in police action that he said crossed a line.
In a LinkedIn post titled “Shutting down Wherehouse”, Chawla announced the closure of the company he launched in 2021.
“We started Wherehouse in 2021, with a hypothesis the brands will come closer to the customers. This was pre-Quick Commerce. The hypothesis stands true. The model evolved and we pushed through every obstacle, capital constraints, operational chaos, and the brutal realities of building consumer infra,” he wrote.
The company even turned profitable last year, but recent events, Chawla said, made it “not worth fighting for.” “Wherehouse means nothing if we can’t protect the very people who built it,” he added.
Details of the dispute with the client
According to the details Wherehouse shared with Moneycontrol, the complainant, Curio Lifestyle, approached Wherehouse in July 2024 to expand aggressively in Delhi NCR. A formal agreement was signed in August with terms including monthly fees and salary reimbursement.
Wherehouse placed stock in 75 stores — triple the contractual commitment — but by November 2024, the client began defaulting on payments. Despite repeated reminders, fixed fees and manpower salaries remained unpaid until March 2025. By May 31 this year, the outstanding debt owed to Wherehouse was Rs 1,92,207, while the total stock value acknowledged by the brand was Rs 46 lakh.
On June 1, the client emailed claiming money was due to her. Chawla refuted the claim based on contract terms. Early June saw abusive language and threats to file criminal cases. On June 16, Wherehouse terminated the agreement citing “abusive and threatening behavior.”
Instead of settling dues of Rs 1,28,000, the client allegedly filed a criminal complaint with the Economic Offences Wing (EOW) after July 15. Wherehouse submitted its defense on July 23, calling the complaint mala fide and aimed at avoiding payment.
Police action and arrest
By November 16, 2025, officers from Nangloi Extension Police Station began calling Chawla, refusing to share complaint details or documents. Between November 17–28, officers visited Wherehouse premises at least six times, obstructing work and pressuring Chawla to come alone without a lawyer.
On November 28, an officer allegedly threatened staff and took 10 warehouse workers — described as “innocent, blue-collar workers with meager salaries” — to the station, releasing them only after families intervened.
According to updates shared by fellow entrepreneur Shachin Bharadwaj, Chawla was arrested around 1 am on Tuesday.
