Analyzing StayZilla Case: This is about an invoice dispute only.

It is getting clear that the disagreement between Stayzilla and Jigsaw is about an invoice and payment due. There were no fraud or cheating involved. Yesterday, Aditya released proof stating,…
Stayzilla / Yogi Case
Stayzilla / Yogi Case

It is getting clear that the disagreement between Stayzilla and Jigsaw is about an invoice and payment due. There were no fraud or cheating involved.

Yesterday, Aditya released proof stating, there was no service deficiency. There were copies of hoardings and email threads. The emails shared are of Nov, Dec, and Jan, when they got the order for the hoardings. The next email is from Apr, 16 where Jigsaw submits an invoice with proofs. The next email is from Nov.

In one FB discussion, Sharad Sharma stated:

From what I have seen, two things are very clear:
1. Aditya was made fully aware of deficient service in March’16. He had to produce proper proof of service which he had not done till Dec 2nd.
2. 37 vendors were paid more than Rs 50cr from Jan to Oct. Plus jigsaw was paid Rs 3cr in this period.
So this isn’t about fraud. Let’s be clear about that.

Two cases come out of this.

1. As per the claims by Jigsaw, they never saw any payment since Feb 16 is false. They have got regular payments in Crores in this period. The bills which were not disputed were getting cleared. Only the payment was on hold for the disputed ones.

2. Stayzilla has informed them about their issues with the invoice, which prompted them to come up with a proof document. (These ad campaigns was carried out in Jan and Feb)

On one side, Jigsaw is saying that the invoices were not disputed. On the other side, Stayzilla claims, the invoice amount is disputed. On one side, Jigsaw claims there was no deficiency of service. On the other hand, Stayzilla claims the hoardings were put in cheap, unviable locations, and not in the prominent positions as invoiced by Aditya.

What were the communication, between this period? What was Stayzilla’s replies after the invoice was submitted? While the email screenshots do throw more light on the incident, it appears, there are still crucial facts being hidden between this period.

Can we request Aditya to share those emails as well? Is he again saying half-truths and hiding inconvenient facts?

One thing is getting clear though, this case can not be about fraud or any criminal intent behind non-payment of the dues. This is clearly a dispute of invoice.

Sharad says the same:

So what is this about?
It about an invoice dispute.
This is about a civil matter which needs to be dealt in the right fashion. Criminal charges were filed to harass and extort money.

This is a civil case. This should be settled by an arbitrator who could hear both sides of the story and help them come to an agreement.

The use of threats, police, and influence is a clear abuse of law and order, something which should not be tolerated in any place, especially in the startup ecosystem.

Sharad adds,

Had Aditya approached it the right way or even now does a mea-culpa (and drops the criminal charges), the ecosystem (me included) will be behind him and help him get his rightful dues.

The ecosystem, supported by 1000+ founders have stood up against the abuse of law and order, to settle a civil dispute. They are angry about the goondaism, and use of influence. They have gone on record on TV, saying the same. Had Aditya approached this in the right fashion, the ecosystem would have been behind him and even helped him get his dues from Stayzilla.

The ecosystem is not fighting against the dues. The fight is against the abuse of law and order, and use of goondaism and influence. This is a fight between a startup and an old school goonda-raj business.

It is now clear that Yogi should not be in jail. Goondaism to settle invoice disputes must stop.

Few things are getting clear, and few things are still not clear.

  1. Why did Aditya file a criminal case against what is clearly a civil dispute? 
  2. Stayzilla claims this is an invoice dispute. Is there an email where they have sent this objection in written? 
  3. Jigsaw claims, there is no invoice dispute.  Has there been any communication from Stayzilla where they have accepted the invoice and agreed to pay?

The proofs submitted thus far from Aditya and Jigsaw does not have any claim where Stayzilla has accepted the invoice amount or promised a payment, but not paid. An invoice in itself does not mean the other party has agreed to make the payment.

There are multiple requests coming from Jigsaw and people close to Aditya asking Stayzilla to come for a settlement. That is the right step. Someone should play the role of an arbitrator and help settle this issue.

A settlement can not happen at gunpoint though. The first step should be to drop the criminal charges and let Yogi come out of jail. The next step would be a settlement.

  1. Would love to learn more from Sharadji and other ecosystem founders on what are the right mechanisms according to them to get smaller vendors to recover their rightful dues from large scale funded companies? Companies with Series C and above funding and flush with foreign cash cannot really get away by calling themselves startups, while its actually the smaller, bootstrapped vendors who are the real SMEs. And would love to have ISpirit Sponsor a public forum where all vendors with pending dues against VC backed companies are directly able to list all pending dues and recover from the startups, or from a specially created escrow account from money funded in by the VCs. Otherwise its creates a trust deficit for other hardworking startups who often don’t get reliable vendors or best rates as they have already been burnt by the so-called larger players.

  2. Finally the truth is revealed, its clearly a civil case and should have been handled amicably…Aditya made it a criminal one.

  3. Its very clear that Aditya used cheap tactics to extort money, so he is a criminal, not Yogi! …He used abusive language and threaten Yogi and his family!

  4. If they had communicated any deficiency let them produce the screen shots of such communication . It’s as simple as that. I haven’t received any communication about the dispute.
    1) no communication about dispute with hoarding invoices
    2) let’s assume there was a dispute (which there isnt) why did they hold back baggage tag payments?
    3) Sharad is no damn judge to decide the merits of the case, the courts have seen a criminal element 4 times!
    4) seems like a bunch of spoilt sissies are throwing toys out of their prams to form a sympathy insulation before they find themselves on the wrong side of the law following Stayzilla, much like snapdeal already has.

    1. Did i just saw you mention “LAW” here..Common Man! stop being a sissy, you don’t understand what law stands for. Idiot, presenting a civil case as criminal is a standard breach of law & you need a tight kick on your backside trying to play the victim card here.

    2. I don’t want to get into the merits of the deficiency of service point, but I still think it’s beneath anyone to call and speak to someone the way you did or pull of any of the other stunts you have.
      Even if you are owed money and are right, you’re not going to get much sympathy because you’ve behaved like a common criminal so far.

    3. If this is how you talk about anyone’s wife, and your mother is hearing you all along, you should be in the jail for criminal intimidation. You have an invoice dispute, you settle it. You don’t go about criminally intimidating, abusing and giving life threats to his family.

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