Travel and hospitality startup Stayzilla’s co-founder Yogendra Vasupal on Tuesday got a conditional bail after being arrested in a complaint of cheating a Chennai-based advertising firm. The Madras High Court has granted bail on the grounds of paying a security fee of Rs 40 lakh to the court to establish bonafide intentions. Justice S. Bhaskaran has said in his order that the accused is granted bail on a condition to deposit Rs 40 lakh to the account of the crime number in the Magistrate court.
Vasupal was arrested on March 14 following a complaint filed by CS Aditya of the Jigsaw Advertising and Solution Private Limited for cheating and breach of trust. 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). As per the complainant, Stayzilla had failed to make payments for advertising services given to the company since February 2016 and has defrauded the ad firm of Rs 1.69 crore. The money asked as security by the Madras High Court is not a bail payout, but to make sure that Stayzilla and its co-founders have sufficient funds to pay off Jigsaw if the aforementioned allegations are proved. As per media reports, last a bail application was submitted by Vasupal’s advocate to the Madras High Court, for his bail. The court said that next hearing will take place on Monday but, later on, it was postponed by a day.
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It is also being said that the counsellor for Jigsaw had pushed for an out of court settlement today. However, Vasupal’s counsellors have denied the offer mentioning that Vasupal was not ready for a settlement. While granting the bail, Judge S Baskaran termed the case as ‘purely a dispute between two businessmen.’