StayZilla co-founder Yogendra Vasupal on Wednesday was arrested by the Chennai Police in connection with a cheating case filed against him by an advertising agency. Jigsaw Advertising, in their complaint, alleged that the homstay aggregator failed to clear previous dues. Vasupal’s lawyer, Muzzafar was quoted by the Business Standard saying that he would apply for bail once his client is produced before a magistrate. He added that it is not clear how much StayZilla allegedly owes to the ad company.
Vasupal, however, rubbished the allegations and shared his ordeal in a blog titled “Help! I need everybody”. Vasupal claimed that the dispute involving his company and the ad agency was over “deficiency of services” and he had asked the other party to settle it in court. He alleged that two policemen came knocking at his door in Bengaluru and asked him to accompany them to the station for questioning.
“I was told that there is a case against me by somebody from Chennai for cheating, intimidation and etc. I recognised the name of the complainant and informed them that there was a dispute between 2 companies and we had asked the other company to take it up in the court,” Vasupal wrote.
He also claimed that he was verbally threatened by the ad agency management on multiple occasions.
On Tuesday, Sachit Singhi, another co-founder at StayZilla, mailed the company investors seeking help as it was difficult to locate Vasupal. In the mail, Singhi wrote that Vasupal went “missing” after being taken to Chennai’s police commissioner office. “We need immediate help. Not sure what’s happening with Yogi and we have not known his whereabouts for last 3 hours for now. And, I think even I’ll be in custody soon,” he wrote in the mail.
In February, StayZilla closed its operations stating that it was working on a different revenue model. “This has been one of the toughest decisions I have taken so far but it is the right thing to do. The hardest part is saying goodbye to a perfect team that has accomplished a lot by putting homestays on the map of India,” Vasupal wrote in a blog post.
The company raised $34 million in seed capital funding from Nexus Venture Partners, Matrix Partners and Sequoia Capital, the Business Standard reported.