The Madras High Court on Tuesday granted bail to Yogendra Vasupal, CEO of Chennai-based Stayzilla.
Vasupal was arrested on March 14 on the basis of a complaint from a Chennai-based advertisement firm CS Aditya of Jigsaw Advertising and Solutions Private Limited for offences under Sections 406 (Punishment for criminal breach of trust), 420 (Cheating), 506 (i) (Criminal Intimidation) of the IPC.
Aditya alleged that Stayzilla failed to make payments for advertising services rendered by him since February 2016 and defrauded him of Rs 1.69 crore.
Vasupal has been directed to execute a bail bond of Rs 40 lakh, Justice S Bhaskran said in his order.
Stayzilla, engaged in the homestay business, was founded by Yogendra Vasupal, Rupal Yogendra and Sanchit Singhi in 2005.
It shut operations in February 2017.