India, April 20 -- If there's one consistent theme in business, it's that everything moves in cycles. We have a funding and growth boom followed by a slump in the markets, and then a new inflection point starts the cycle anew. But between these ups and downs, we can spot another pattern - corporate governance lapses, allegations of fraud against founders.

The past two weeks have thrown up two such incidents which have been boiling away for some time. The first one is the widely publicised troubles for BluSmart in connection with allegations of embezzlement against its founders in their other company, publicly listed Gensol.

The second equally big story is Medikabazaar, another B2B startup that has been weighed down by allegations such a...