Nykaa Sues Ex-CBO, Now Tata Cliq CEO, Over Confidentiality Breach And Employee Solicitation

Nykaa, a beauty and fashion product retailer, has filed a lawsuit against its former Chief Business Officer, Gopal Asthana, who is now serving as Chief Executive Officer (CEO) of Tata Cliq, alleging breach of confidentiality and misuse of proprietary data.

Nykaa claims Asthana solicited former employees to join Tata Cliq, some of whom have made the switch in the past year. In a petition to the Bombay High Court, Nykaa seeks a refund of Rs 19 crore in employee stock options and Rs 5 crore for loss of goodwill.

The court has issued an interim order preventing Asthana from recruiting Nykaa staff for Tata Cliq. Asthana, who joined Tata Cliq in June 2023 after a three-month garden leave, has denied the allegations, calling them incorrect and subject to arbitration. He noted that Tata Digital, his current employer, is not involved in the dispute.

Nykaa argues that Asthana’s senior role within the company provided him access to confidential business data, which could harm the company’s operations. Despite a non-compete agreement, Nykaa had allowed Asthana to join Tata Cliq, a direct competitor in the beauty, fashion, and accessories market.