Stayzilla co-founder and Chief Executive Officer Yogendra Vasupal has applied for bail, nearly a week after he was arrested in Chennai on charges of defrauding a vendor.
The bail application is expected to come up for hearing on Tuesday, sources told BusinessLine .
The online home-stay aggregator in February said it was closing down its operations as it had run out of money, and had apparently given a three-month notice to all its employees.
The founders said they will come out with a new business model before restarting the company. Stayzilla had received a fresh round of $13 million in funding in May 2016.
One of its vendors, Jigsaw Solutions, claimed that since April 2016, the promoters had been promising to clear all dues, which has now added up to ₹1.7 crore.
The founders had also roped in Bharat Matrimony head Murugavel Janakiraman to mediate on their behalf with the advertising firm, though nothing came of it.