Chennai: A top honcho of a homestay startup, Stayzilla, was arrested on charges of cheating and criminal intimidation by the sleuths from the Central Crime Branch (CCB), on Tuesday. Yogendra Vasupal, co-founder and CEO of Stayzilla, was produced before a court here, which remanded him to Judicial Custody.
His arrest follows a complaint from Chennai-based advertising firm alleging that Stayzilla owed Rs 1.72 crores towards charges for advertising services rendered and that even while promising repayment, Vasupal wound up business last month. He allegedly issued threats when approached for settling the dues, according to the complaint lodged by Mr C.S.Aditya of the ad-firm, Jig Saw, which had executed Stayzilla's advertisement campaigns for several years.
Sources said Aditya had attached copies of email conversations among other things to serve as proof for Stayzilla defaulting payment and other charges leveled against the top executives of the shutdown firm.
Stayzilla took to social networking accusing Jig Saw and Aditya of misrepresenting to the police what was apparently only a civil dispute arising out “deficiency in services”.
However, Mr Aditya pointed out that Insara Technologies, the holding company of Stayzilla, in one of its audit confirmation letters had acknowledged the legitimate outstanding dues to Jig Saw at Rs 1,56,32,992.
A further email conversation between Jig Saw and Stayzilla-CFO Sachit Singhi placed on record that the firm would revert on 'when and how we are going to clear the payable' for a particular campaign involving baggage tags.
“How long will advertising agencies and media houses bear losses because of irresponsible wannabe entrepreneurs who manage to get funding just to live a 5 star life for a few years and then shut shop and expect the hard working small time business people to suffer?” asked Mr Aditya. “They cheat us and if the system takes action, they cry foul. My case is genuine and I trust the courts will give me justice. Besides, these people have cheated the public”, Aditya said in an e-mail to Deccan Chronicle.
