ET BureauCHENNAI: StayZilla Co-Founder Yogendra Vasupal was today granted bail by the Madras High Court on a condition that he should deposit Rs 40 lakh with the court to establish bonafide intentions.
Judge S Baskaran, while granting bail, termed the case as "purely a dispute between two businessmen."
Interestingly, the counsellor for Jigsaw had pushed for mediation as a means to settle the issue but Vasupal's counsellors told the court firmly their client was not up for mediation.
The money deposit was necessitated after counsellors for Jigsaw raised questions over Vasupal's intentions to settle dues. "They closed StayZilla, which made us apprehensive," the counsellor said. The judge has given Vasupal one week's time for the deposit.
A counsellor for Vasupal said the money will not go to the de-facto complainant(Jigsaw) until the case is complete.
Jigsaw solutions, an advertising vendor, had lodged a complaint of dues worth Rs 1.69 crore owed by StayZilla for a period between March and May 2016. The company, which had raised $13 million in May, had filed up on February this year, promising a reboot.
The police filed a case under Section 420, 406, and 506(I) on March 13 and arrested Vasupal in Chennai on the IT corridor the next day.
Vasupal's arrest and the quick action by the police polarised observers, with some claiming the episode is rattling the start-up ecosystem while others saying it is just a one-off incident.
Vasupal had posted two blog posts, one making a fervent plea for help and other asserting that he had no intentions to cheat as made out by Jigsaw.
Judge S Baskaran, while granting bail, termed the case as "purely a dispute between two businessmen."
Interestingly, the counsellor for Jigsaw had pushed for mediation as a means to settle the issue but Vasupal's counsellors told the court firmly their client was not up for mediation.
The money deposit was necessitated after counsellors for Jigsaw raised questions over Vasupal's intentions to settle dues. "They closed StayZilla, which made us apprehensive," the counsellor said. The judge has given Vasupal one week's time for the deposit.
A counsellor for Vasupal said the money will not go to the de-facto complainant(Jigsaw) until the case is complete.
Jigsaw solutions, an advertising vendor, had lodged a complaint of dues worth Rs 1.69 crore owed by StayZilla for a period between March and May 2016. The company, which had raised $13 million in May, had filed up on February this year, promising a reboot.
The police filed a case under Section 420, 406, and 506(I) on March 13 and arrested Vasupal in Chennai on the IT corridor the next day.
Vasupal's arrest and the quick action by the police polarised observers, with some claiming the episode is rattling the start-up ecosystem while others saying it is just a one-off incident.
Vasupal had posted two blog posts, one making a fervent plea for help and other asserting that he had no intentions to cheat as made out by Jigsaw.
( Originally published on Apr 11, 2017 )
Get Unlimited Access to The Economic Times
