Nish Hair founder Parul Gulati has filed a police complaint alleging two Bengaluru employees stole Rs 10 lakh in inventory. The staff reportedly diverted customer payments and conducted sales outside the company's billing system. Customers are advised to use official payment channels and demand receipts to ensure legitimate transactions.
What Happened
Parul Gulati, the founder of the hair extension and accessory brand Nish Hair, has publicly accused two employees at the company's Bengaluru location of inventory theft. According to Gulati, the employees allegedly siphoned off products valued at approximately Rs 10 lakh over a period of several months. The theft was uncovered when stock records, which previously seemed to reconcile, showed a significant deficit of Rs 10 lakh in the latest audit. Gulati has initiated legal action by filing a police complaint regarding the matter.
How the Scheme Allegedly Worked
According to the allegations made by the company founder, the employees bypassed the brand's established financial controls. They reportedly diverted payments from customers into their own personal bank accounts rather than the company's official channels. Furthermore, the employees were allegedly conducting sales entirely off-book, meaning these transactions were never recorded in the official inventory or revenue systems. One of the individuals involved reportedly admitted to participating in these activities for about six months, claiming personal illicit gains of approximately Rs 8 lakh. The second employee involved in the alleged scheme is reportedly not currently located.
Impact on Business and Customers
This incident highlights the operational risks small and medium enterprises (SMEs) face regarding internal control and retail management. For a direct-to-consumer brand, such activities can lead to revenue leakage, inaccurate inventory tracking, and potential damage to brand reputation. Gulati has issued an advisory to customers, urging them to be vigilant. The company is asking patrons to insist on receiving an official invoice for every purchase and to ensure that payments are only made through designated company payment links or QR codes that clearly identify "Nish Hair." The advisory is aimed at protecting customers who may have unknowingly paid into personal accounts, which would leave them without a valid purchase record or company support.
What Investors and Small Business Owners Should Monitor
While Nish Hair is a private entity, the incident provides a practical case study for investors and entrepreneurs on the importance of robust internal controls. Key areas that business owners typically monitor to prevent such issues include the integration of real-time inventory management with point-of-sale systems, the conduct of regular independent stock audits, and the enforcement of strict policies where employees are prohibited from accepting payments via personal accounts. The next steps for the company will likely involve the ongoing police investigation and the potential strengthening of retail oversight procedures to prevent future revenue loss.