A Chennai court denied bail to homestay aggregator Stayzilla's co-founder Yogendra Vasupal who was arrested after the startup shut shop, sparking fears among India's entrepreneurs.
Vasupal's police custody was extended by a day and will be presented in Chennai Special Magistrate Court's on Friday, Assistant Commissioner of Police S Muthuvel Pandi told BloombergQuint over the phone.
He was arrested on March 14 for allegedly cheating an offline marketing vendor Jigsaw Advertising and Solutions Pvt Ltd, whose founder CS Aditya alleged that Stayzilla failed to pay Rs 1.72 crore. Vasupal and his partner Sachit Singhi face charges of cheating, criminal breach of trust and intimidation under the Indian Penal Code.
More than 175 founders from the country's startups last week signed an open letter to top ministers and bureaucrats calling for Vasupal's release and a fair trial. Industry bodies Federation of Indian Chambers of Commerce & Industry, CII, NASSCOM, iSPIRT, Internet and Mobile Association of India and The Indus Entrepreneurs issued a statement on Wednesday seeking his release and a legal framework for business closures.
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