Mumbai, Aug 31 (IANS): A Mumbai court on Wednesday rejected the anticipatory bail application of 4B Networks Pvt Ltd founder Rahul Yadav, who is co-accused along with co-founder Sanjay Saini on charges of defrauding InterSpace Communications Pvt Ltd, of Rs 10 crore.

Yadav, who had founded housing.com a few years ago, and Saini had applied for a pre-arrest bail last week days after a Look Out Circular was issued against them, and their plea came up for hearing before the session court and was rejected.

Following a complaint by Inter Space Communications founder Vikas Omprakash Nowal earlier this month, the Mumbai Police's Economic Offences Wing (EOW) lodged a FIR on August 19, and started a probe into the high-profile matter.

The duo has been charged under various sections of the Indian Penal Code and their homes and offices raided in Mumbai.

Nowal, who was paid only a part of his dues for a publicity campaign he ran for 4B Networks, hopes to recover the outstanding of Rs 7 crore plus interest piled up to over Rs 10 crore, pending for nearly 10 years.