Manish Arora, once a celebrated name in the fashion industry, known for his vibrant designs and elaborate shows, faced allegations of financial mismanagement and employee mistreatment. Former employees claimed that while the company, Arora Fashion, struggled to pay salaries and maintain operations, Mr. Arora commissioned extravagant Burning Man outfits and enjoyed luxurious vacations. Artisans reportedly spent up to 20 days crafting these outfits, even as they were owed substantial back pay for their regular work. Meanwhile, employees anxiously watched Mr. Arora and his business partner, Mr. Bhagwani, document their lavish New Year’s trip to Goa on social media, while their own salaries remained months overdue.
Mr. Arora denied any misuse of company funds for personal expenses, claiming in an email that he “never misused [his] position in the organization or wasted funds on personal expenses.” Mr. Bhagwani attributed the company’s financial struggles in 2016 and 2017 to “a small cash flow issue” related to the costs of runway shows. However, by early 2018, the company had stopped contributing to employees’ mandatory Provident Fund retirement accounts, impacting at least a dozen individuals.
Around this time, Intrend, a Chinese fashion holding company, and Gulshan Jhurani, an accountant specializing in turning around troubled businesses, invested in the Manish Arora brand. Neither Intrend nor Mr. Jhurani responded to requests for comment. Former production workers, recently laid off, revealed in a video sent to The New York Times that they were owed months of wages and hadn’t seen Provident Fund contributions for two years, despite filing a formal complaint with the Indian government.
Employees reported being caught in a frustrating cycle of deflection when inquiring about their unpaid salaries. They were repeatedly redirected among different individuals within the company, including Mr. Jhurani and accounting staff, without receiving any resolution. One former employee lamented, “If you will do this, how will my wife and children survive?” Despite the company’s financial difficulties, Arora fashion relocated its headquarters and sampling studio to Dhan Mill, a prestigious area in Delhi, and hosted a lavish opening party in February 2018.
