Stayzilla's CEO and founder Yogendra Vasupal arrested over pending dues

It's hard times for homestay booking startup, Stayzilla. Barely a couple of weeks after shutting down its operations, the company is once again in trouble. Stayzilla's founder and CEO Yogendra Vasupal has been taken into custody by the commissioner of police in Chennai because of non-payment of dues, according to Economic Times report.

Apparently, Jigsaw Advertising firm filed a complaint under the penal code section on cheating over pending dues of Rs 1.7 crore. Vasupal is currently locked up in the Puzhal Central Prison.

The news was made public by co-founder Sanchit Singhi, who wrote an email to its investors, asking for help. He said that "Yogi is missing" and that he was last seen at the office of the commissioner of police in Chennai.

He also said that Vasupal’s family had been receiving threats from the agency. He wrote, "The calls started in December when Jigsaw Advertising sought the influence of a local MLA. The MLA's aides started calling and harassing (Yogi) Vasupal and our staff. Some of the calls have been of a threatening nature, abusing Yogi and his family members."

He further added, "Two days ago, his parents received a parcel at home to find a black magic sculpture with a photo of Yogi attached with a nail to its forehead."

According to Rupal Yogendra, accused's wife, Vasupal wrote a blog on publishing site Medium, about various ordeals he and Singhi had been facing in the past few weeks. She said Vasupal wrote the blog, titled ‘Help! I need everybody,’ before he was arrested.

Vasupal wrote that the company was involved in two cases. “The first case is against a politician who was our landlord. We have video and audio proof of an assault and then a verbal threat to kill. The second case against us is from a media agency with whom the company had a dispute over the deficiency of services and to whom we had asked to take it up in court.”

He added, “I have realised that while we all want India to Start-up and Stand-up, the regulatory framework + corruption (sic) does not let one pick up after they fall. Instead, it works overtime to bury them.”

Vasupal's friends and family have been showing support on Twitter.

The company's investors include Matrix Partners India and Nexus Venture Partners. The company has so far raised about $33 million.