CFO Sachit Singhi has also been asked to deposit Rs 25 lakh in the magistrate court.

Stayzilla CFO finally granted anticipatory bail by Madras High Court
Atom Stayzilla Friday, April 28, 2017 - 09:43

After being dismissed twice, the Madras High Court has finally granted anticipatory bail to Stayzilla co-founder and CFO Sachit Singhi.

As per a report in the Times of India, he has been asked to deposit Rs 25 lakhs in the magistrate court. He has also been asked to appear before the central crime branch police in Chennai every day at 10 am for two weeks.

This comes after Singhi’s bail was rejected twice by a Principal Sessions Court in Chennai.

Singhi was named the co-accused in a complaint filed by Stayzilla’s vendor Jig Saw Solutions for fraud and non-payments of dues to the tune of Rs 1.7 crore. Co-founder and CEO Yogendra Vasupal was arrested by Central Crime Branch in Chennai on March 14 after which the police was looking for Singhi as well. After spending nearly a month in jail, Vasupal was granted bail on April 11. Vasuapl too, was asked to deposit a sum of Rs 40 lakh and appear before the court every day at 10am for two weeks.

Stayzilla suspended operations on February 24, claiming that it will restructure itself and reboot operations. Following this, Aditya CS of Jig Saw claimed that the company did not pay him his dues since January 2016 and filed a case against Vasupal and Singhi. The night before his arrest, Vasupal had also put out a blog saying he was being harassed by his landlord and by Jig Saw Solutions. Voodoo dolls were sent to the CFO's house.

This was followed by a series of accusations made by Jig Saw Solutions claiming that the company had gone ahead with the advertising campaigns and then refused to pay Aditya his dues. However, Most recently, Stayzilla too, put out proof claiming that there were indeed deficiency of services and that Aditya had cheated them by fudging the proof of delivery of the ad campaigns. 

Show us some love and support our journalism by becoming a TNM Member - Click here.