Open Letter From Founders on Stayzilla Issue Date: 20th March, 2017 To, Shri. Rajnath Singh Ji Hon’ble Home Minister North Block, Central Secretariat , New Delhi-110001 Dear Sir, We would like to express our concern and draw your attention towards the manner in which Yogendra Vasupal (Yogi), Founder and CEO, Stayzilla was arrested with regard to the matter registered as FIR 71/2017 CCB Chennai and the alleged influence including harassment by the concerned officials in Chennai, Tamilnadu. Although we do not wish to prejudge to the matter, the Stayzilla case and it’s locked up founder underscore the hardships of being an entrepreneur in India. If ever there’s a right to be an entrepreneur, that’s clearly been violated. Period. The question is not how this will affect entrepreneurship today, but how young Indians looking to become entrepreneurs in the future will give up even before starting up. You can find as many technical flaws and loopholes about a client-vendor contract (which by the way can be contested in the long term), and go roundabouts regarding how “an innocent” vendor was forced to abuse, intimidate and even send voodoo dolls with the picture of entrepreneur’s kids. The point is, all this appears to be a Bollywood nightmare, and unlike the movies, there are no real life superheroes to fight the battle. How you wish there actually was a superman who could stop it then and there. This doesn’t necessarily wipe out the faith in judiciary. If anything, a fair judicial probe and hearing, is the only hope from hereon. But all this does shake the faith when it comes to starting up in India, building a company from scratch. As a founder, we already have enough battlefronts, from acquiring customers to funding growth and ensuring the startup doesn’t die. You add a disgruntled vendor using position of power and influential network to make you go through hell, and suddenly, it becomes a battle lost. When Yogi was walking on a Chennai street, couple of cops in plain clothes drove past, snatched his mobile phone and asked him to come to the police station. they assured him they were aware of all the intimidations from Aditya. By the time he reached the police station, things changed. He started getting pressurized to confess to “a crime” he never committed. His refusal to confess to a crime he never committed only made the things worse for him. Has Yogi siphoned away money? Was he running away from any enforcement agencies or the debtors? Has he ever threatened and visibly intimidated the vendor and his family? How will he protect his own family when he is locked inside the jail, and those announcing ways to intimidate his wife and kids (on Facebook) are out in the open? If the answer is none of the above, then why on earth has he been locked up in jail for a week, away from his wife and two children? Of course the judiciary will eventually get to the bottom of this case after a fair trial, and God willing, Yogi will walk out of the jail. But what Yogi and his family are going through now make India look like the worst place, a nightmarish choice to become an entrepreneur. He has not had a bail hearing despite being jailed for 7 days. This is already had global repercussions and besmirched India’s reputation in Silicon Valley and elsewhere. We are standing up together as a community and believers in the vision of Honble Prime Minister, Shri. Narendra Modi for “Startup India. Stand-up India” to call for a free and fair investigation into the dispute and strongly oppose any abuse of power to subvert the law of land. We humbly request you to look into this matter and ensure that expeditious justice is provided to Yogi.Yogi had last week, before his arrest put up a blog on Medium, where he alleged that he was being hounded by his landlords and by Jigsaw Advertising. The industry has rallied behind Yogi and condemned the manner police has dealt with the issue. A likely civil case has been made to be a criminal case. Read More: Stayzilla saga: Jigsaw’s muscle power will shoo away startups
now shut down Stayzilla, who was arrested last week, for not paying up INR 17.2 million (approx US$259,000) that the company allegedly owed to Chennai based advertising agency, Jigsaw Advertising, will have to spend more nights in jail. According to sources close to Yogi, as Vasupal is popularly known as, his bail application is going to come in Court only on Wednesday, March 22, 2017. Meanwhile, the industry has come up with a website, Help Yogi, that has a letter addressed to Indian Home Minister, Rajnath Singh, urging “to look into this matter and ensure that expeditious justice is provided to Yogi.” The campaign, which is open for signatures from the industry, had 73 signatures at the time of filing the story. Some prominent names amongst the signatories include Vijay Shekhar Sharma, CEO, Paytm; Bhavish Aggarwal, Co-founder, OlaCabs; Mohandas Pai, Board member of Infosys; Amarendra Sahu of NestAway. The letter has also been marked to Minister of State for Commerce and Industry, Nirmala Sitharaman; Amitabh Kant, CEO, Niti Aayog; Edappadi K Palaniswami, Chief Minister, Tamil Nadu; Rajiv Mehrishi, Home Secretary, Ministry of Home Affairs; and Ramesh Abhishek, Secretary, Department of Industrial Policy and Promotion.
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