Couple of days after Stayzilla founder Yogendra Vasupal was arrested in a cheating case, the industry body CII has today said that the recent development around him is likely to create fear in the minds of aspiring entrepreneurs. It also added that the development may also affect ‘Start Up India’ initiative. CII Start-up Council Chairman Kris Gopalakrishnan has today said that the legal developments around Stayzilla founder is disturbing and the nature of accusations against the company falls under the category of civil disputes and not under criminal charge unless it is done with the intention of fraud..
Gopalakrishnan also said that startups are can suffer from all kinds of financial vulnerabilities and criminal proceedings against startup companies is likely to create fear in the minds of aspiring entrepreneurs. Vaspual’s arrest didn’t go well with other Startup founders who took to various social media platforms to protest against the decision. Flipkart founder Sachin Bansal said, “Let the law take its course, but intimidation of #stayzilla founders crosses a line. It is unhealthy for entrepreneurship in India.” A #SaveYogiSaveStartup campaign was also launched on Whatsapp by Yogendra Vasupal’s close friends and colleagues.
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Snapdeal founder Kunal Bahl also came out in his support and posted, “Many startup founders, including myself, have seen the ugliness of getting on the wrong side of people with bad intentions.” Since then a lot of people have come in support of Yogendra Vasupal on Twitter as well. Stayzilla was under crisis for some time now and matters became worse when an emergency email by a co-founder Sachit Singhi to investors Nexus Venture Partners and Matrix Partners went viral on social media. Afte this, Singhi revealed that he started getting death threats. Even a blog post written Vasupal stated that scary dolls were sent to Singhi’s home on 9th March.
(With inputs from PTI)