Stayzilla co-founder Yogendra Vasupal gets conditional bail in fraud case

Stayzilla co-founder Yogendra Vasupal

StayZilla Co-Founder Yogendra Vasupal was today granted bail by the Madras High Court on a condition that he should deposit Rs 40 lakh with the court to establish bonafide intentions.

The money deposit was necessitated after counsellors for Jigsaw raised questions over Vasupal's intentions to settle dues.

Yogendra Vasupal was arrested on March 14 after his vendor Jig Saw advertising filed a complaint for cheating and nonpayments of dues to the tune of almost Rs 1.7 crore.

This comes after Vasupal's bail plea was dismissed twice - once by the principal session court, Chennai on March 28 and by a special magistrate court in Chennai on March 23.

Jigsaw solutions, an advertising vendor, has accused StayZilla of not paying dues of Rs 1.69 crore. The police has filed several charges against the startup entrepreneur under the Indian Penal Court sections including 406 (Punishment for criminal breach of trust), 420 (Cheating), and 506 (i) (Criminal Intimidation).

Jigsaw's council insisted that Vasupal submit a deposit amount to ensure that the co-founder meant to settle a disputed payment to the firm.

As per the report, the counsellor for Jigsaw pushed for an out of court settlement today.

When the bail application of Stayzilla CEO Yogendra Vasupal came up for hearing before Justice S Bhaskaran, the latter made a passing reference about the charge of breach of trust mentioned in the FIR and asked since it being "breach of trust" arising out of business transaction, could it not be resolved by mediation. In order to pacify the counsellers, the judge issued a conditional bail for Vasupal. He was arrested for cheating an advertisement firm Jigsaw.



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