Delhi-based warehousing start-up Wherehouse, founded in 2021, has shut down after a client dispute escalated into police action. In the early hours of Tuesday, co-founder Vaibhav Chawla was arrested around 1 am following what he calls a “frivolous” complaint by a client. Several employees were also detained, allegedly without proper documentation, and released only after their families intervened.
The conflict traces back to an August 2024 agreement between Wherehouse and Curio Lifestyle. The start-up was contracted to place stock in a limited number of Delhi-NCR stores but reportedly exceeded expectations, supplying 75 outlets, three times the agreed figure. By November 2024, Curio Lifestyle allegedly stopped making payments. By May 2025, unpaid dues had risen to ₹1.92 lakh, while client-owned stock held by Wherehouse was valued at around ₹46 lakh.
Matters worsened in June 2025 when Curio Lifestyle reversed its position and claimed that Wherehouse owed it money—a charge the start-up strongly denied. Following abusive messages and escalating threats, Wherehouse terminated the contract on June 16. Instead of settling pending dues of about ₹1.28 lakh, the client filed a criminal complaint with the Economic Offences Wing, which Wherehouse believes was an attempt to evade payment.
From mid to late November 2025, police visits reportedly intensified. Officers allegedly pressured Chawla to appear without legal counsel and detained multiple staff members. On November 28, ten workers were taken to the police station and released only after families intervened.
In a LinkedIn post, Chawla wrote, “A frivolous complaint, and the line was crossed… Wherehouse means nothing if we can’t protect the very people who built it.” He said the past months had been “brutally hard” and concluded that continuing the business was no longer viable, despite its earlier profits and operational growth.
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