A criminal lawsuit has been filed against one of the biggest luxury watch retailer of the country – Ethos Watches. EthosWatch Boutiques retails luxury high-end brands like Rolex, Jacob & Co., Ulysse Nardin, Breitling, Jaeger-LeCoultre, Hublot and Panerai amongst others.
The suit has been filed by a reputed legacy watch dealer Nimo who had been the gateway for the Saboos, the promoters of Ethos Watch, to the Luxury Swiss Watch Brands. The Saboos traditionally are the manufacturers of watch parts like dials and needles.
What followed was a potboiler of deceit and cheating where the Saboos despite being bound contractually deliberately bypassed Nimo to establish direct association with the luxury Swiss Watch brands. Nimo has approached the Delhi High Court seeking ₹5.10 crore in damages and other relief based on the allegations filed in the court.
An infamous story goes whereby allegedly Pranav Saboo, the MD and CEO of Ethos Watches bypassed Nimo with an Uber Luxury Watchmaker to get the exclusive retail deal for India by offering double the order value that Nimo was doing. Power of wealth took toll on ethics and principles of legit business practices.
The lawsuit against Ethos Watches elaborates how a listed luxury watch retailer (KDDL Limited) allegedly exploited confidential business information obtained under an NDA to sideline a smaller independent distributor.
The suit alleges Ethos directly approached Swiss brands introduced by Nimo after receiving confidential contracts and commercial information. Instead of completing the proposed transaction, Ethos allegedly dealt directly with the brands, cutting Nimo out.
Additionally the case raises questions about whether dominant players can leverage their market position against smaller businesses. Nimo alleges that its goodwill, business relationships, and revenues were harmed by the alleged conduct.
Nimo claims Ethos obtained access to years of hard-earned relationships, exclusive brand contracts, and commercial know-how under the promise of a strategic partnership, only to allegedly use that information to pursue the brands directly. Nimo alleges that its business, reputation, goodwill, and future growth have suffered because of the alleged conduct.
The case raises broader questions about whether smaller distributors and entrepreneurs can safely collaborate with much larger listed companies without risking misuse of confidential business information.