Court grants StayZilla founder Yogendra Vasupal conditional bail; says case “dispute between two businessmen”

In a major relief, StayZilla co-founder Yogendra Vasupal was granted conditional bail. The Madras High Court told Vasupal to deposit Rs 40 lakh with the court to establish bonafide intentions.

While granting the bail, Judge S Baskaran said the case was "purely a dispute between two businessmen." Vasupal has one week’s time to deposit the amount.

Vasupal has rejected for mediation even after the counsellor for Jigsaw pushed for it to settle the issue.

Jigsaw solutions, an advertising vendor, has accused StayZilla of not paying dues of Rs 1.69 crore.

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.