The principal sessions court judge here on Tuesday dismissed a bail appeal moved by Yogendra Vasupal, the jailed co-founder of online home stay aggregator Stayzilla in an alleged cheating case filed by a Chennai-based advertising agency. The court has also rejected the anticipatory bail moved by second accused Sachit Singh. Vasupal had approached the principal sessions court, with an appeal for bail, against a lower court order that dismissed his earlier bail petition. A special metropolitan magistrate on March 23 had dismissed Vasupal’s bail application chiefly on the grounds that prima facie charges against the petitioner cannot be ruled out.
The court had also then held that the bail cannot be granted since an application by police for Vasupal’s custody was still pending. Subsequently, the CCB of the state police, was also granted one-day custody of Vasupal. When the appeal for bail came up at the principal sessions court, the prosecution on vehemently opposed the application noting that the accused has committed a clear case of cheating under section 420 of IPC.
The city public prosecutor argued that instant case involves breach of trust where in the complainant has rendered advertisement services to the accused on the trust that he would pay the charges without fail. But the accused has exploited the trust of the complainant by cheating him, he submitted. The counsel for Vasupal while refuting the contention that Vasupal has closed down the company, he submitted that he has just only changed the business model and he has all intention to start a new and more profitable business model under the same company.
The counsel further argued that Vasupal is already under judicial custody for 14 days and even was given one day custody to the CCB. Meanwhile, an application seeking anticipatory bail for the second accused, Sarjit Singhi, was also field in the court. CCB had arrested Vasupal on March 14, based on a complaint file by CS Aditya of Jigsaw Advertising and Solutions Private Limited for offences under Sections 406 (Punishment for criminal breach of trust), 420 (Cheating), 506 (i) (Criminal Intimidation) of the IPC.
According to the complainant, Stayzilla had failed to make payments for advertising services rendered by him since February 2016 and has defrauded him to the tune of R1.7 crore. Though the appeal for bail was taken up on Monday, the hearing was adjourned to Tuesday.