Chennai: The principal sessions court on Tuesday dismissed the bail petition filed by Yogendra Vasupal, co-founder of online home stay aggregator Stayzilla, arrested in connection with cheating to the tune of Rs 1.69 crore.
Principal sessions judge M.Nazir Ahamed dismissed the bail petition after City public prosecutor M.L. Jagan vehemently opposed the plea. The judge also dismissed the anticipatory bail petition filed by Sarjit Singhi, partner of Vasupal and arraigned as second accused in the case.
Based on a complaint from C.S.Aditya of Jigsaw Advertising and Solutions Private Limited, the Central Crime Branch police had on March 14 arrested Vasupal for offences under section 406 (punishment for criminal breach of trust), 420 (cheating) and 506 (i) (criminal intimidation) of the IPC. According to Aditya, Stayzilla had failed to make payments for advertising services rendered by him to the company since February 2016 and defrauded him to the tune of Rs 1.69 crore.
When the bail application of Vasupal came up for hearing, Jagan contended that this was a clear case of breach of trust. The complainant has rendered advertisement services to the accused believing that he would promptly make the payment. But the accused had cheated him, he added.
Nirmal Kumar, counsel for the complainant submitted that the accused had closed down the registered office of the company in the city without informing anyone. The firm Stayzilla was established in 2005. It has been in existence for almost 12 years. But they still claim it to be a start up. So far they have received Rs 87 crore as investment. In February last, a board meeting of the company was held in which all the directors except the founding members resigned. Thereafter, the company has been closed down, he added.
Senior counsel B.Kumar, appearing for the accused submitted that the dispute was civil in nature and the criminal case has been foisted as a pressure tactics.
The oral agreement between Aditya and Vasupal dates back to 2014. Since then various invoices for Rs 8.50 crore were raised and Rs 6.8 crore has been already paid. The pending Rs 1.69 crore includes the disputed invoices amounting to Rs 1.44 crore. Vasupal was ready to pay the balance of Rs 25 lakh, if released on bail, he added.
